NAMIBIA – Namibia Breweries expects to register a drop of between 25% and 35% in operating profits for the 2020 financial year when compared to 2019.
The drop is attributed to the ban of sale of alcohol in both Namibia and South Africa to curb the spread of Covid-19 which has dealt the company a major blow, reports The Namibian.
The brewery’s 2019 operating profit was at N$651 million, if it drops by the indicated rate it will be between N$488 million and N$424 million.
“Basic earnings per share and headline earnings per share for the period ended 30 June 2020 are expected to decrease by between 65% and 75% compared to last year,”Namibia Breweries
Group revenue last year hit N$3 billion, up from N$2.7 billion recorded in 2018, however, with the lockdowns in the last three months of the financial year, a serious nosedive should be expected.
“Basic earnings per share and headline earnings per share for the period ended 30 June 2020 are expected to decrease by between 65% and 75% compared to last year,” the company said.
For its half year period ended December 2019, the company had earned a revenue of N$1.7 billion and profit was at N$317 million.
NBL achieved positive overall volume growth of 3% in the interim period, despite difficult economic times, driven by innovative thinking and new product launches.
The group had a brand portfolio of over 15 products during the period, including popular Tafel Radler, Mckane Dry Lemon, AquaSplash, Fruitree, Camelthorn, King Lager, Windhoek draught, Windhoek Lager, Windhoek Draught, Windhoek Light, Windhoek Non-Alcoholic beer.
Despite having a tough second half year period, the subsidiary of the Ohlthaver & List (O&L) has launched a new non-alcoholic flavoured beer dubbed Horizon.
With less than 0.5% alcohol, the new product reaffirms its commitment to instil a culture of continuous innovation.
In addition, NBL will strengthen its commitment of promoting responsible alcohol consumption and curbing the abuse of alcohol, noting that consumers in Namibia have limited choice for quality locally crafted non-alcoholic beers.
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