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NBL Generates N$1.82 Billion From Namibia Sales

By:Megameno Shinana
The Namibia Breweries Limited’s (NBL) – a subsidiary of the Ohlthaver & List (O&L) Group – net revenue increased by 14.1% to N$ 3.021 billionfor the financial year ended 30 June 2022.
This growth was predominately a result of the growth in volumes to South Africa, a 35% increase in royalty income from Heineken SA, as well as price increases taken in the local market. The price increases in Namibia were necessitated by extraordinary raw material, packaging material and various other cost increases during the 2022 financial yearn.
Headline earnings per share increased 45.3% to 262,5 cents.
Normalized earnings of NBL’s core business (excl Heineken SA) stifled growth by c. 15%.
Operating profit grew by 8.9% to N$667.4million.
NBL said it generated N$1.82 billion in revenues from local beer product sales for the financial year, a 6.6% decline from N$1.95 billion revenues recorded for the same period last year.
Experts at Simonis Storm said: “We see this core profit growth tapering off further, mostly due to cost pressures and inefficiencies arising from supply chain challenges.”
“The market’s excitement however still revolves around the potential Heineken NV deal, which would result in a special dividend of N$26.35 being declared. We upgrade our rating to a Buy (previously Hold), with a 12-month target price of N$56.29 translating to a potential upside of 22.4%. More than 100 years later NBL divulged O&L’s intention to sell their 50.01% shareholding of NBL Investment Holdings (Pty) Ltd. to Heineken International B.V. resulting in 100% ownership.”
NBL IH has a 59.37% stake in NBL with the remainder being the public.
The SA Tribunal, COMESA, and Tanzanian regulatory approvalis being sought for the deal to conclude which are all expected early 2023. Any objections have the potential to delay or even derail the deal.
“We think the odds are in the acquisition’s favour, but only time will reveal. The deal continues by encompassing the sale of NBL’s 25% shareholding in Heineken SA to Sunside Acquisitions Pty Ltd (Newco), an unlisted subsidiary of Heineken International B.V. (Subsidiary of Heineken N.V.),” said Simonis Storm.
The negotiated price is N$5.5billion, with N$73.6million being set aside to extinguish an existing loan provided by Heineken SA, and the remainder to be distributed to NBL shareholders of about N$5.4billion (N$26.35 per share).
Finally, NBL is set to acquire the Distell Namibia companies for a consideration of N$1.64billion.

Megameno Shinana

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