- King Lager, McKane Lemonade – new products
- Namibia Breweries’ profit after tax up by 37%
Namibia Breweries Limited has released its results for the six months ending December 31, showing a 3% decline in revenues as compared to the previous period due mainly to volume migration to South Africa. The brewer however secured an eight (8%) increase in Namibia beer volumes compared to the prior period. “The Group´s operating profit (before equity losses) for the period ended 31 December 2015 grew 5% compared to the previous period. The Group´s cost base benefitted from favourable price variances for raw materials and packaging materials, which supported the growth in operating profit. Profit after tax increased by 37%, mainly impacted by the reduction in the operating losses attributable to the associate,” said the company in a statement announcing results.
Namibian beer volumes have continued to grow and increased by 8% compared to the prior period, said the company. New products King Lager and McKane Lemonade were launched during the period. Tafel Lager and Windhoek Lager continue to perform well and contributed to the overall growth in volumes. The Group has also strengthened its strategy to position itself in the craft beer market during the period. The Group started trading in the mainstream water category through the acquisition of Aquasplash from Namibia Dairies (Pty) Ltd during this period.
Total beer and soft drinks volumes sold to export markets decreased by 21% and 46% respectively compared to prior year. However, the export beer volumes for the Namibian products experienced a steady increase. China and Mozambique remain a challenge; however Zimbabwe and Swaziland´s volume contributions continued to grow. Slow economic growth and devaluation of currencies continue to put pressure on volumes in Zambia. Tanzania´s volume growth remains stable compared to prior year.
“The Group will continue to focus on growing the beer portfolio in Namibia and South Africa, which includes the Windhoek Trade Mark, as well as the Heineken and Amstel portfolio. The Group will remain committed to building on our strong foundation in our home market Namibia as well as all export markets and also support the new opportunities that lie in South Africa through the new partnership with Heineken,” said the company. The Board of Directors has declared an interim dividend of 40 cents per ordinary share. [nsx.com.na]