NAMIBIA – Namibia Breweries Limited have closed their 2019 financial year with 17 export destinations, 18 brands, and a profit of N$931 million (US$62.88m), reports the Namibian.

This is according to recently released financial statements of Namibia’s premier breweries, whose revenue hit N$3 billion (US$0.2bn) this year, up from N$2.7 billion (US$0.18bn) recorded in 2018.

Almost 50% of the group’s profit came from NBL’s investment in Heineken South Africa which returned to profit after incurring a series of losses.

Of the N$3 billion (US$0.2bn) revenue, the Namibian market remains the biggest contributor at close to N$2 billion (US$0.14bn), followed by South Africa at N$852 million (US$57.54m), the Tanzanian market at N$77 million (US$5.2m), and the rest of the world garnering less than N$60 million (US$4.05m).

In all the 17 countries, beer was the largest revenue pool for the company at N$2.7 billion (US$0.18m).

The Fruitree maker further said the non-alcoholic and low-alcoholic beverage segments grew over the last year, with revenue increasing by 27% from N$183 million (US$0.18bn) to N$251 million (US$16.95m).

Finance director Waldemar von Lieres said for the first time in three years, volumes in Namibia have started peaking and earning a 3,9% growth, while overall volumes increased by 13,8% worldwide.

Other key indicators show that operating expenses were up by 17%, more than the group’s revenue increase of 15%, while finance costs dropped marginally from N$43 million (US$2.9m) to N$42 million (US$2.84m).

The group has a healthy balance-sheet of N$3.1 billion (US$0.21m), with a strong retained earnings figure of N$1.9 billion (US$0.13m), being 61% of total assets.

The group has a deferred tax liability of N$183 million (US$12.36m), which could be reduced by a N$68 million (US$4.59m) unused tax loss off the balance-sheet.

The financial statements show that Heineken SA brought in revenue of N$9.3 billion (US$0.63bn), which is an uptick from N$7 billion (US$0.7bn) recorded last year.

The increase in revenue led to them making a profit of N$657 million (US$44.37m) from a loss of N$179 million (US$12.09m) in 2018.

Royalties earned from Heineken SA stood at N$105 million (US$7.09m), a 9% average increase from N$96 million (US$6.48m) recorded in 2018, while inter-company sales with the associate stood at N$1.3 billion (US$8m).

The NBL group’s relations with Heineken SA started in 2003, and this year, the investment in the associate stands at N$885 million (US$59.77m) from N$404million (US$27m) last year.

About N$334 million of the N$450 million(US$22.57m) Heineken SA profit included in Namibia Breweries’ statements relate to a deferred tax asset raised on a N$1.3 billion (US$8m) tax loss which was recognized over the years, where auditors Deloitte and Touche agree with management that there is a high probability of recovery and is thereby recognizable.