Home Business Namibia: Breweries Says Markets to Remain Under Pressure in the Short-to-Medium Term Given the Economic Business and Consumer Impact of Covid-19

Namibia: Breweries Says Markets to Remain Under Pressure in the Short-to-Medium Term Given the Economic Business and Consumer Impact of Covid-19

by telegramnews
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Namibia Breweries Limited was not able to recover volumes lost during COVID-19 alcohol bans, seeing a 16.6% decline in overall volumes by the end of the financial year ended 30 June 2020.

According to the latest financials released by the company, the ban on the sale of alcohol during the months of April and May 2020 contributed to a volume decline of 14.6% for Namibia, and a decline of 22.9% for volumes to South Africa. In 2019, Namibian volumes increased by 3.9% while South African volumes increased by 44.8%.

However, the company’s export markets showed a volume growth of 10.4%, this after recording a decline of 31.2% in 2019.

Towards the end June 2020, the company’s operations resumed with some normality and it was able to deliver products to customers, however, headline earnings fell from N$596 million to N$261 million, while revenue fell by 14.6%.

Managing Director, Marco Wenk said they expect volumes in core markets to remain under pressure in the short-to-medium term given the economic, business and consumer impact of COVID-19 lockdowns and restrictions.

“Our focus will continue being on stabilising the business while placing high emphasis on maximizing volumes, delivering at the lowest cost and ensuring the best price at the highest quality. In addition, stock availability, production efficiency and brand innovation will remain key to recover to normal volumes while protecting margins,” Wenk said.

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