REF 17/0318. Friday, 15 September 2017 NBL FINANCIAL RESULTS FOR THE YEAR ENDED 30 JUNE 2017

Transcription

1 REF 17/0318 Friday, 15 September 2017 NBL FINANCIAL RESULTS FOR THE YEAR ENDED 30 JUNE 2017 PERFORMANCE HIGHLIGHTS Revenue N$ 2.7 billion, up by 11.7% Operating profit N$ 611 million, up by 13.0% Profit after tax N$ 318 million, down by 14.5% Earnings per share cents, down by 14.5% Headline earnings per share cents, up by 23.6% Final dividend per ordinary share 42 cents, up by 5.0% Business performance Namibia Breweries Limited (NBL) a subsidiary of the Ohlthaver & List (O&L) Group - delivered another solid financial performance in 2017 with operating profit, revenue and volumes growing by 13%, 12% and 8%, respectively. These results were achieved mainly as a result of growth in volumes sold to South Africa despite a particularly challenging year, which was characterised by severe drought, unpredictable exchange rates and rapidly shifting consumer tastes. The NBL Board declared a final dividend of 42c on 5 September 2017, which represents an increase of 5% from the previous period. NBL Managing Director (MD), Wessie van der Westhuizen: Our performance demonstrates NBL s resilience and ability to adapt to changes within our operating environment. It is also the direct result of our employees taking ownership of challenges and instead creating opportunities to bring our purpose to life. Without this, NBL would have delivered a very different result in 2017.

2 Brands Beer volumes continue to grow and NBL still enjoys a majority market share in Namibia. In February 2017, we announced Tafel Lager as the official sponsor of South Africa s Griquas Rugby Union team. We have seen exceptional growth of this brand in South Africa and identified this sponsorship as an opportunity to further strengthen its visibility and awareness among South African consumers. NBL continued to raise awareness of King Lager s role in the home-grown barley project. This in turn supports the local barley industry, with the ultimate goal of creating sustainable employment in Namibia. King Lager therefore remains a purpose driven initiative for NBL and, despite challenges, is committed to its long-term success. During the year, we worked with Stellenbrau and Soweto Gold on product pack renovations and format extensions that are more aligned to consumer needs. Our own craft brand, Camelthorn, was renovated and relaunched in Namibia and South Africa in July Following the restructuring of the South African operations in December 2015, it was mutually agreed to terminate the Distribution Agreement between Diageo and NBL. With effect from 31 December 2016, NBL discontinued the manufacturing, distribution and sales of all Diageo products, including Smirnoff. Financial performance NBL Finance Director, Graeme Mouton: The quality of NBL s relationship with Heineken South Africa contributed to this year s performance. While Namibian beer volumes shrunk by 3%, this decline was off-set by a 46% increase in volumes sold to Heineken South Africa. NBL therefore achieved an overall volume growth of 8%. NBL maintained an operating margin of 22% despite the challenging trading environment. Profit attributable to shareholders of N$318 million was delivered a decrease of 14.5% on the prior year. This decrease is mainly attributable to the increase in equity accounted losses from NBL s associate, Heineken South Africa, as a result of increased shareholding. The equity losses were further increased with the loss incurred by Heineken South Africa resulting from the restructuring of the South African operations.

3 Outlook Van der Westhuizen concluded: The challenges in our operating environment highlight the importance of continually diversifying our business, product and brand portfolio, and strategy in order to stay ahead of the variables we have experienced in the past year. This includes an ongoing focus on first-time-right initiatives across the business. We are excited by the significant success of Heineken South Africa in the past year. We will continue to maximise scale efficiencies and capabilities across the two businesses in order to optimise our supply footprint in Southern Africa, as well as possible synergies in the export market. We will continue to leverage our portfolio of premium beers, capitalise on new opportunities in the growing craft beer segment, and respond to consumers ever-changing needs. About Namibia Breweries Namibia Breweries Limited employs 802 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) / Fax: +264 (0) Mail: Roux-Che.Locke@ol.na

4 Managing Director of Namibia Breweries Limited (NBL) a subsidiary of the O&L Group, Wessie van der Westhuizen (left) speaks at the NBL Financial Results Announcement for the period ended 30 June 2017, while NBL Financial Director, Graeme Mouton looks on.

5 Managing Director of Namibia Breweries Limited (NBL) a subsidiary of the O&L Group, Wessie van der Westhuizen (right) and NBL Financial Director, Graeme Mouton are happy with the NBL Financial Results ended 30 June 2017.

6