Natbrew’s expects full year losses

National Breweries (Natbrew), a unit of Delta Corporation Zimbabwe, says its loss per share could slip into a bigger-than-expected loss in the year ended March 31 2023 owing to the depreciation of the Kwacha and rising maize prices.

Natbrew produces, packages and markets traditional sorghum beer products in Zambia.

Popular variants of its opaque beer are Chibuku Shake-Shake and Chibuku Super.

“In accordance with the Lusaka Securities Exchange Listings Requirements, the Board of Directors of National Breweries Plc hereby advises the Shareholders of the company that the loss per share for the year ended 31st March 2023 is expected to increase by 98 percent to the corresponding period last year,” the company said in a trading update.

According to the trading statement for the six months ended September 30, 2022, the firm saw a decline in revenue as a result of a product mix that was heavily weighted towards lesser value packs and a 66 percent rise in excise taxes on its goods.

On the other hand, higher distribution expenses also reduced margins.

“Though an improvement in product mix was observed in the second half of the year, the impact of the aforementioned, the depreciation of the Kwacha in the 4th quarter of the year and the increase of maize prices from December 2022 up to the reporting date, ultimately impacted the financial performance as at 31st March 2023.”

In 2018, Delta reportedly snapped up an estimated 441 million shares from Anheusur Busch InBev SA/NV to acquire a controlling stake in Natbrew at an estimated cost of US$12 298 639,32, with a single share going for approximately US$,028.

Snapping a controlling stake in Natbrew was part of Delta’s long-term strategy to boost its diversified beverages business by making forays into the regional market. Natbrew, which markets its products under the Chibuku brand, is the leading opaque beer manufacturer in Zambia.

Natbrew expects to publish its financial statements for the fiscal year that ended on March 31, 2023, on or around July 25, 2023.-ebusinessweekly