REF 17/0317
Friday, 17 March 2017
NBL releases half
31 December 2016
year
financial
results
for
the
period
ended
PERFORMANCE HIGHLIGHTS

Revenue N$ 1.5 billion, up by 13.6%

Operating profit N$ 326 million, up by 6.5%

Profit after tax N$ 96 million, down by 45.0%

Earnings per share 46.5 cents, down by 45.0%

Headline earnings per share 113.4 cents, up by 3.2%

Final dividend per ordinary share 42 cents, up by 5.0%
Business performance
Namibia Breweries Limited (NBL) – subsidiary of the Ohlthaver & List (O&L) Group - maintained
its strong market position despite a strained local economy, challenges in export markets and
declining consumer spend. For the half year ended 31 December 2016, Namibian, South
African and export volumes increased by 1.1%, 33.1% and 7.3% respectively. Revenue
increased by 13.6% and operating profit was 6.5% higher than the comparative period. The
solid increases are attributed to a positive volume mix and focus on production. Headline
earnings per share is up by 3.2%, while earnings per share is down by 45.0% as a result of an
increased equity loss from associate. The increase in share of losses from NBL’s associate is
mainly attributable to an increased shareholding, as well as final adjustments as a result of the
restructuring of the South African operations. The NBL Board declared an interim dividend of
42c on 2 March 2017, which represents an increase of 5% from the previous period.
NBL Managing Director (MD), Wessie van der Westhuizen: “Our half-year financial performance
is testimony to our long-term business strategy as defined by the O&L 2019 Breakthrough Plan.
That will continue to guide us in building a breakthrough organisation, and live our purpose
statement of ‘Creating a Future, Enhancing Life’. Despite the challenging environment we
currently operate in, NBL still enjoys a majority market share.
Brands
Namibia beer volumes continue to grow and NBL still enjoys a majority market share. The
current period saw the launch of the low-calorie Tafel Lite beer as a range extension to NBL’s
biggest beer brand, Tafel Lager. NBL further launched Code, a new soft drink, offering an
additional non-alcoholic alternative to customers who are loyal to the NBL product portfolio.
Innovation in this category is specifically aimed at supporting NBL’s commitment to responsible
consumption.
King Lager, launched in 2016, remains at the core of NBL’s commitment to grow the Namibian
barley industry and stimulate job creation.
During the period, NBL further strengthened its new partnerships in the craft beer market. NBL
now handles a significant portion of production for both the Stellenbrau and Soweto Gold craft
breweries in a win-win agreement for all stakeholders. NBL currently produces the two major
Stellenbrau brands Craven Craft Lager and Jonkers Weiss as well as Soweto Gold Lager.
Financial performance
NBL Finance Director, Graeme Mouton: “NBL maintained an operating margin of 22% despite
the challenging trading environment. Overall NBL has delivered good performance in the last 6
months, mainly driven by the growth in South African production volumes. Total beer volumes
sold to export markets increased by 7.7% compared with the previous period. The focus export
markets, Tanzania and Zambia, continued to show good growth. Export volumes to Botswana
and Mozambique declined in comparison with the prior period.
Following the restructuring of DHN Drinks in the previous period, the new Heineken partnership
delivered volume and market share growth while restructuring and regenerating the business.
The increased volumes to South Africa during this period reduced the impact of tough local
trading conditions.
Outlook
Van der Westhuizen concluded: “We are optimistic that we will continue to deliver positive
results. NBL still enjoys a majority market share, and will continue to drive growth through
diversification into other beverage categories. NBL will continue to focus on expanding its
product portfolio, which includes the soft drinks and non-alcoholic beverages portfolios that
appeal to a wider consumer base, in Namibia as well as South Africa and beyond.
We are confident that the improvements in the South African business will continue and further
contribute to the profitability on both sides. NBL and Heineken South Africa are exploring a
combined effort in optimising the supply footprint in Southern Africa as well as possible
synergies in the export market.
Water will remain a top priority. NBL will continue to drive water saving and engaging with
strategic partners such as Government and the City of Windhoek to find and support
sustainable long-term solutions.
NBL is also excited about Tafel Lager’s opportunities in South Africa and will continue its
support of the local sports teams.
About Namibia Breweries
Namibia Breweries Limited employs 773 employees. The company is listed on the Namibian
Stock Exchange (NSX). The Ohlthaver & List (O&L) Group is the largest investor in NBL. The
company’s brand portfolio includes leading brands such as Windhoek Lager, Windhoek
Draught, Windhoek Light, Tafel Lager, Tafel Lite, King Lager, Vigo, Code and Aquasplash,
amongst others.
Issued by:
Roux-Ché Locke
Group Manager: Corporate Communications
O&L Group Corporate Relations
P.O Box 16, Alexander Forbes House
C/o Independence Avenue & Fidel Castro Street Windhoek, Namibia
Tel: +264 (0)61 207 5111 / Fax: +264 (0)61 255 599
Mail: [email protected]
NBL Managing Director, Wessie van der Westhuizen (right) and Financial Director,
Graeme Mouton.
NBL Managing Director, Wessie van der Westhuizen (left) and Financial Director,
Graeme Mouton (right) during the announcement of NBL’s Half-Year Financial Results
Ended 31 December 2016.