The Breweries’ revenue fell to N$2.6 billion from almost N$3.1 billion in 2019.
NBL Finance Director, Waldemar von Lieres said The financial impact of COVID-19, including the suspension of production, trading and exports, was stifling. NBL’s volume growth had been
gaining momentum since the positive turn in 2019, until business came to an almost complete
halt at the end of March 2020 up to the end of May 2020.
NBL’S volumes to South Africa declined significantly by -22.9% compared to 44.9% in 2019: +44.8% which is as a result of the alcohol ban and stringent measures the SA government put in place.
In 2015, O&L went through a major restructuring exercise which saw Namibia Breweries Limited (NBL) taking the local brewer to South Africa, in addition to its ongoing local operations.
Their results released last year showed that NamBrew’s revenue grew to N$1,6 billion during the period under review, while operating profit stood at N$371 million, up by 7,6%. Meanwhile, profit after tax was up by 52,7%, standing at N$367 million.
During stage 1 and 2 from April and May 2020, the ban on the sale of alcohol NBL’s volumes declined by -14.6% for Namibia compared to a healthy increase of 3.9% in 2019.
Meanwhile, their export markets bloomed and showed a volume growth of 10.4% (2019: -31.2%).
NBL’s operating profit stood at N$453 million, down by 30.5% while profit after tax was down by 71.9%, standing at N$261 million.
Heineken SA experienced severe trade restrictions in South Africa, contributing to the NBL share of associate loss of N$76.7 million. This is a significant swing from last year’s share of profit of N$450 million which included a substantial prior year deferred tax asset, derived from previously unutilised tax losses, of N$ 334,7 million.