Beverages industry punch drunk

The latest official figures confirm that lockdowns, border closures and Covid-19 measures in general have had a massive impact on beverage manufacturers in Namibia.

17 September 2020 | Business

Jo-Maré Duddy – With Covid-19 measures ravaging production and export earnings of the entire beverages industry in the country, investors should expect no fizz in NamBrew’s annual results which will be released today.

The heavyweight on the Local Index of the Namibian Stock Exchange (NSX) last week warned that it expects the operating profit for the year ended 30 June 2020 to be between 25% and 35% lower compared to its 2019 financial year.

Namibia Breweries reported an operating profit of about N$651.9 million for its 2019 book-year.

In its trading statement on the NSX, NamBrew last Thursday attributed the expected “substantial decrease” mainly to “the ban on alcohol sales in Namibia and South Africa as part of both governments´ efforts to curb the spread of the Covid-19 virus”.

Intoxicating data

The latest figures of the Namibia Statistics Agency (NSA) confirm that lockdowns, border closures and Covid-19 measures in general had a massive impact on the production of all beverages by all manufacturers in the country.

According to NSA sectoral reports, a total of 1 598 347 hectolitres of beverages – alcoholic and non-alcoholic – were produced by the local industry in the first six months of 2020. This is a drop of 539 961 or 25.3% compared to the same half-year in 2019.

Production hit the bottom of the barrel in April when the industry only produced 103 963 hectolitres of beverages, nearly 71% down from April 2019. In July – the latest sectoral report – 224 599 hectolitres were produced in total, nearly 20.3% less on an annual basis.

Export drought

The NSA’s index for alcoholic beverages has been recovering since its record low of 8.6 basis points in April. In May it was 16.9, followed by 63.3 in June. July’s index came in at 87.3, which means July’s production was still 12.7% below the 2015 basis year.

In July 2019, the index for alcoholic beverages was 116.3 basis points.

Covid’s economic onslaught has equally hit the export of beverages by the local industry.

NSA trade reports show that the industry exported only N$44 million worth of beverages in the second quarter of this year – April, May and June. Compared to the same quarter in 2019, this is a slump of N$348 million or nearly 89%.

In July – the latest NSA trade report – beverages to the tune of N$27 million were exported, a tumble of 71.7% compared to July 2019.

Similar News

 

Gems from Elizabeth Bay expected mid-2021

1 day - 20 October 2020 | Business

Namibia's Elizabeth Bay diamond mine will start operations in the first quarter of 2021, according to its new owner, Lewcor Group.Lewcor manager Abraham Grobler said...

COMPANY NEWS IN BRIEF

1 day - 20 October 2020 | Business

American Airlines to return Boeing 737 Max American Airlines Group plans to return Boeing 737 Max jets to service for passenger flights by the...

What I need to know about VAT as a...

2 days ago - 19 October 2020 | Business

A little place to call one’s own and to hopefully retire in is a goal many of us share. Whether your intention is to buy...

Company news in brief

2 days ago - 19 October 2020 | Business

Glencore in nickel supply talksGlencore CEO Ivan Glasenberg said on Friday that the company is talking with carmakers and battery makers about nickel - a...

Nothing beats The Bakery Den

5 days ago - 16 October 2020 | Business

Monique Adams “If baking is any labour at all, it’s a labour of love. A love that gets passed from generation to generation.” – Regina...

Company news in brief

5 days ago - 16 October 2020 | Business

Ryanair slashes winter flightsRyanair said yesterday that it will slash more flights this winter, temporarily shutting bases in Cork and Shannon in Ireland, and Toulouse...

Agriculture offers attractive monetary returns

6 days ago - 15 October 2020 | Business

PHILLEPUS UUSIKUAgriculture is one of Namibia’s most important sectors and is a significant source of economic growth and industrial transformation.Most of Namibia’s population is dependent...

COMPANY NEWS IN BRIEF

6 days ago - 15 October 2020 | Business

Apple enters 5G race with iPhone 12 Apple Inc launched its next-generation iPhone 12, with faster 5G connectivity that the California company hopes will spur...

Caught in controversy

1 week ago - 14 October 2020 | Business

Jo-Maré Duddy – Namibia’s fishing sector continues to find itself in stormy waters and is set this year for its first contraction since 2015.The Bank...

Housing project opens doors for timber

1 week ago - 14 October 2020 | Business

Two local businesses have come up with a solution to utilise locally harvested timber which cannot be exported.The Ministry of Environment, Forestry and Tourism in...

Latest News

Covid kicks Shiimi in the...

5 hours ago | Ministries

OGONE TLHAGE WINDHOEKThe Covid-19 pandemic has sucked government coffers dry and hit state revenue streams by nearly N$5 billion, thus exerting pressure...

Seven apprehended for wildlife crimes

5 hours ago | Crime

ELLANIE SMIT WINDHOEK Seven suspects were arrested for wildlife-related crimes in five separate cases recently, of which three are new cases registered...

Unemployment drives youth into electoral...

5 hours ago | Opinion

Yesterday, the Electoral Commission of Namibia (ECN) announced that a whopping 93 independent candidates have been registered to contest in the upcoming regional council elections.In...

APP takes aim at NamWater,...

5 hours ago | Politics

Kenya KamboweRUNDU The All People's Party (APP) says NamWater and the country's various regional energy distributors (REDs) are making a fortune off local authorities,...

Teacher makes extra income from...

5 hours ago | Agriculture

STAFF REPORTERWINDHOEKFarming activities can become an extra income for many Namibians.A science teacher at the Oshilungi Combined School, Anneli Mutumbulwa, chose not to depend on...

Agriculture still feeling the pinch

5 hours ago | Agriculture

ELLANIE SMITWINDHOEKMeasures put in place to prevent the spread of the coronavirus caused disruptions in food chains in Namibia, which in turn posed a threat...

Don't judge on the basis...

5 hours ago | Opinion

TONI HANCOXThe Legal Assistance Centre (LAC) objects to any characterisation of Namibian voters by race or ethnicity. Not all white voters have the same opinions,...

Use of 'war' in electoral...

5 hours ago | Opinion

SOPHIA SHANINGWAOn 17 October 2020, the president of the Swapo Party, Comrade Hage G Geingob successfully launched our campaign for the November 2020 regional and...

What a time to be...

5 hours ago | Sports

LIMBA MUPETAMIWINDHOEKThe year 2020 has been exceptional for Namibian international Peter Shalulile as he not only jointly won the PSL Golden Boot with 16 goals,...

Load More