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Summarised Consolidated Results for the 6 months ended 31 December 2022
Namibia Breweries Limited
(“NBL” or “the Group”)
(Incorporated in the Republic of Namibia)
(Registration number 2/1920)
Share code: NBS
ISIN: NA0009114944
Summarised Consolidated Results for the 6 months ended 31 December 2022
2022 2021 2020
(Unaudited) (Unaudited) (Unaudited)
Net Revenue (N$’000) 1 860 158 1 533 229 1 385 659
Operating profit (N$’000) 358 994 357 960 344 034
Profit for the period (N$’000) 288 982 291 765 170 733
Ordinary shares in issue (thousands) 206 529 206 529 206 529
Basic earnings per share (cents) 1 138.6 125.2 82.7
Headline earnings per share (cents) 1 137.4 123.9 81.4
Basic earnings per share (cents) 2 1.3 16.1 -
Headline earnings per share (cents) 2 1.3 16.1 -
Ordinary Dividend per share (cents) 0.0 0.0 56.0
Notes:
1) Continuing operations
2) Discontinued operations
Financial Performance
NBL showed resilience in a highly subdued economy, with half-year revenue increasing by 20.6%
to N$2 389 million. This, despite significantly reduced consumer spending on the back of rising
prices for basic goods and services, higher interest rates, a 6.9% increase in inflation and a 22%
increase in fuel prices. Under current conditions, consumers remain mindful about what they spend
their money on while continuing to switch between beverage categories.
NBL experienced significant cost pressures, which included a 25% increase in the cost of glass and
a 34% increase in the cost of malt. Combined with higher advertising and promotional spending, this
resulted in a 0.3% increase in operating profit to N$359 million.
Excellent sales performance from South Africa supported fixed cost absorption and a 29.9%
increase in royalties, the latter amounting to N$92 million for the six months.
Debtor days remained in a healthy range. Some payment delays in export markets impacted the
rate of sales.
NBL remains in a strong cash position given that dividend payments have been temporarily
suspended under the conditions of, and up to the conclusion of the Heineken transaction. Net cash
flow from operating activities increased to N$199 million (2021: N$191 million). Net cash outflow
from investing activities of N$97 million was higher than N$38 million in 2021.
Capital investment projects are in full swing, with NBL replacing its non-returnable bottling line and
expanding its packaging hall, while further expansions to warehousing and empties facilities are
envisaged for 2023. Capital expenditure amounted to N$157 million (2021: N$61 million). NBL
remains committed to local procurement where possible.
Prospects
The next months will see a significant yet exciting change for NBL and its people. A detailed
integration process will be driven by Heineken to capture the opportunities of an expanded portfolio
of brands, a bigger team and more occasions to meet consumer demand. NBL will start
implementing plans to create capacity for more manufacturing in Namibia as it migrates from beer
to a multiple-beverage category.
There will be a strong focus on optimisation, driving a combined supply chain, and using data as
well as systems and processes to ensure efficiency and compliance.
Consumer demand is expected to remain muted. Initiatives to drive sales will continue while
managing costs in line with volumes.
The NBL team is positive and energised by the upcoming changes and appreciates the opportunities
that will be realised in becoming part of such a significant global entity.
Dividend Declaration
No interim dividend was declared in accordance with the conditions of the Heineken Transaction.
As part of the Heineken Transaction, the special dividend payment of N$26.35 will be paid to
shareholders when the disposal of the investment in Heineken SA becomes unconditional. NBL
received dispensation from the NSX to publish conditional dividend declaration data in anticipation
of the disposal becoming unconditional. A finalisation announcement will be made once the
outstanding Conditions Precedent to the disposal have been fulfilled or, if applicable, waived and
the disposal has become unconditional. Subject to the disposal becoming unconditional, holders of
ordinary shares will be entitled to the Special Dividend, with the Last day to Trade being 30 March
2023, and payment date being 14 April 2023.
Short form announcement
This short form announcement is the responsibility of the directors. It is only a summary of the
information contained in the full announcement and does not contain full or complete details.
Any investment decision should be based on the full announcement accessible from Thursday, 16
March 2023 on our website at www.nambrew.com/investor-hub/ and via the NSX link
https://senspdf.jse.co.za/documents/2023/nsx/isse/nbs/NBSDec2022.pdf
Copies of the full announcement are available for inspection at the Group's registered office at no
charge, weekdays during office hours.
By order of the Board
16 March 2023
Directors
S Thieme (Chairperson), M Wenk (Managing Director), W von Lieres (Finance Director),
H–B Gerdes, P Grüttemeyer, G Hanke (alternate to S Thieme), LV McLeod–Katjirua, VJ Mungunda,
R Pirmez1, P Sabrié2 (alternate to R Pirmez), AR Schimming- Chase, SLM Siemer3 and H van der
Westhuizen
1 Belgian 2 French 3 Dutch
Secretaries
Ohlthaver & List Centre (Proprietary) Limited
Alexander Forbes House
23 – 33 Fidel Castro Street
PO Box 16, Windhoek, Namibia
Sponsor
PSG Wealth Management (Namibia) (Pty) Ltd
Member of the Namibian Stock Exchange
Date: 16-03-2023 05:00:00
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