REF 17/0317 Friday, 17 March 2017 NBL releases half year financial results for the period ended 31 December 2016 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: Roux-Che.Locke@ol.na 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.