16 Mar 2016 08:50am
WINDHOEK, 16 MAR (NAMPA) The Namibia Breweries Limited (NBL) has recorded growth in operating earning, despite volume migrations to South Africa, increase in a competitive landscape and adverse foreign exchange fluctuations.
NBL Managing Director (MD), Wessie van der Westhuizen said this Tuesday in a media statement on when reflecting on the company's half-year financial results for the period that ended on 31 December 2015.
Operating earning refers to the profit made after subtracting the various costs of running a business such as the cost of producing the goods and marketing. A business is seen as more profitable with a higher operating earning.
Van der Westhuizen said NBL, which is a subsidiary of the Ohlthaver & List (O&L) Group, has recorded an increase of five per cent in operating profit, which stands at N.dollars 308 million that attributed to strong gross margins resulting from favourable price variances and efficiencies in operating costs.
Earnings per share and headline earnings per share increased by 37 per cent and six per cent respectively.
He noted investment in South Africa has decreased in share of losses attributable to the associate by 37 per cent, while a final dividend of 40 cent was declared, which represents an increase of eight per cent from the previous period.
NBL delivered solid results which points to the strength of the Groups capabilities to deliver on key business drivers in an increasingly challenging environment.
He stressed the company's strategy is to continuously focus on partnering with local, export and South African key markets where there are strong capabilities.
The MD said the company acquired 25 per cent of the issued share capital of Sedibeng Brewing (Pty Ltd) (Sedibeng) and an additional 9.5 per cent of the issued share capital of DHN Drinks (Pty) Ltd (DHN), both in South Africa, on 01 December 2015.
As a result of this acquisition, Van der Westhuizen said the company is expected to achieve further synergies and streamline costs.
We wish to thank all NBL shareholders, internal and external stakeholders, as well as our loyal customers and consumers for their continuous support and trust in NBL, he said.