Namibia Breweries’ operating profit (before equity losses) for the six month period ended 31 December 2010 showed a 19% increase over the previous period, according to a company statement. The increase was driven in part by the brewer’s cost base benefiting from lower malted barley prices. Earnings per share increased by 38%. The company pays an interim dividend per ordinary share of 25 cents, it said.
The Namibian market continues to remain a significant contributor to total revenues and earnings, Namibia Breweries said. Overall domestic volumes grew by 7% compared to the previous period. Tafel Lager and Windhoek Draught saw significant growth compared to last year resulting in a very strong balanced beer portfolio. The Windhoek Draught brand was extended into a 750ml returnable pack and this new pack size was launched in September 2010. The new pack size has been well received by our consumers and to date this has delivered steady growth for the brand.
The South African Joint Venture (DHN Drinks (Pty) Ltd) continued to grow in a competitive beer market and this was ahead of the total RSA beer market growth. The Windhoek Trade mark also grew in the period, with Windhoek Draught particularly doing well in both can and the 440ml bottle. NBL’s income from DHN (incl. royalties, manufacturing margin and share of associate) is up substantially.
Exports (excluding South Africa)
Volumes in the remainder of the company’s exports also grew. This was attributed to Windhoek Lager and Windhoek Draught. NB’s brands continued to grow in Botswana despite the government introducing a 30% alcohol levy in November 2008, which was increased to 40% in December 2010.
Namibia Breweries remain positive that the second half of the financial year will deliver further growth. Maintaining margins through continued focus on production efficiencies will remain a key focus point going forward. The business has made some significant investments into the Windhoek production site and much of this is due for commissioning in the second half of the financial year. “This will ensure that the brewery is in a position to support our growth”, it said.