Covid drains NamBrew's profit barrel
18 September 2020 | Business
Jo-Maré Duddy – A slump in revenue and an equity loss from Heineken SA due to alcohol bans as a Covid-19 preventative measure left Namibia Breweries (NBL) with profit of only about N$261.3 million for the year ended 30 June 2020 – 72% or N$669 792 less than in its 2019 book-year.
Results released on the Namibian Stock Exchange (NSX) this morning show revenue for the past financial year falling by 14.6% to nearly N$2.65 billion, N$451 751 less than the comparative period in 2019.
Headline earnings per share (HEPS) – a profit gauge – were 125.6c, down from 450.7c in 2019.
“NBL’s overall volumes declined by 16.6% given an unusually challenging year as a result of Covid-19,” NamBrew said.
“The ban on the sale of alcohol during the months of April and May 2020 contributed in a volume decline of -14.6% for Namibia (2019: +3.9%), and a decline of -22.9% (2019: +44.8%) for volumes to South Africa while our export markets showed a volume growth of 10.4% (2019: -31.2%).
“Towards the end of the financial year, operations resumed with some normality and we were able to deliver products to customers and see consumers enjoying our brands again,” the locally-listed giant continued.
A final dividend of 53c (interim dividend: 53c) per ordinary share was declared for 2020. No special dividend was declared for this year (2019: 121.05c per ordinary share).
NamBrew Thursday closed at N$33.01 per share on the Local Index of the NSX. The share price has lost 32% since the end of 2019 when it closed at N$48.27 a piece.
In terms of market capitalisation by total shares in issue, NamBrew remains the biggest company on the Local Index.
On Thursday, its market capitalisation was N$6.818 billion – about N$3 billion less than at the end of 2019.
Read the full report Monday in Market Watch.
Results released on the Namibian Stock Exchange (NSX) this morning show revenue for the past financial year falling by 14.6% to nearly N$2.65 billion, N$451 751 less than the comparative period in 2019.
Headline earnings per share (HEPS) – a profit gauge – were 125.6c, down from 450.7c in 2019.
“NBL’s overall volumes declined by 16.6% given an unusually challenging year as a result of Covid-19,” NamBrew said.
“The ban on the sale of alcohol during the months of April and May 2020 contributed in a volume decline of -14.6% for Namibia (2019: +3.9%), and a decline of -22.9% (2019: +44.8%) for volumes to South Africa while our export markets showed a volume growth of 10.4% (2019: -31.2%).
“Towards the end of the financial year, operations resumed with some normality and we were able to deliver products to customers and see consumers enjoying our brands again,” the locally-listed giant continued.
A final dividend of 53c (interim dividend: 53c) per ordinary share was declared for 2020. No special dividend was declared for this year (2019: 121.05c per ordinary share).
NamBrew Thursday closed at N$33.01 per share on the Local Index of the NSX. The share price has lost 32% since the end of 2019 when it closed at N$48.27 a piece.
In terms of market capitalisation by total shares in issue, NamBrew remains the biggest company on the Local Index.
On Thursday, its market capitalisation was N$6.818 billion – about N$3 billion less than at the end of 2019.
Read the full report Monday in Market Watch.
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