Opaque beer maker National Breweries Plc has announced that it continues to record loss per share, according to a statement from the company.
“In accordance with the Lusaka Securities Exchange (“LuSE”) Listings Requirements, the Board of Directors of National Breweries Plc (“Natbrew” or “the Company”) hereby advises the Shareholders of the Company that the Loss Per Share for the half year ended 30 September 2021 is expected to be 84% lower than the corresponding period last year”, read a statement from the Company Secretary Vongai Chiwaridzo on 15 December 2021.
Like many businesses, the impact of COVID-19 has been brutal on operations and sales. “The company recorded a 14% reduction in revenue due to the reduced volumes compared to last year as the COVID-19 restrictions in 2020 resulted in higher sales of some of the company’s packs”. In addition, accelerating inflation and other macro-economic factors have impacted financial performance. “Margins were eroded by high costs of distribution and escalating packaging costs which were driven by the depreciation of the Kwacha”.
However, bullish kwacha performance cooled under performance. “Despite this, the appreciation of the Kwacha post elections resulted in a significant exchange gain which positively impacted the company`s Loss after tax and Loss per share”.