Africa: Namibia Breweries Limited (Nambrew) said on April 28 full-year headline earnings per share more than doubled but said operating profits fell due partly to high import tariffs imposed by neighboring Angola, according to Reuters. Although operating profits slipped to N$41 million ($6.1 million) from 70.5 million, favourable taxation rates following the Namibian Income Tax Amendment Bill in 2002 helped boost headline earnings per share to 23.7 cents from 11.1 cents, while the dividend rose to 11 cents from 8.4 cents. Headline EPS strip out capital, extraordinary and non-trading items.

The company said the situation in Angola -- its biggest export market outside South Africa -- had since been resolved through a bilateral trade agreement, and said the decline in profitability was "of a temporary nature". "The directors are of the opinion that the decline is of a temporary nature and that profitability will be restored over the medium term," it said in a statement.

The company, in which Dutch brewer Heineken and Britain's Diageo hold a combined 28.9 percent stake, reported revenues of 944.5 million Namibian dollars for the year to January 31, 2004, up from 878.9 million a year before. Heineken and Diageo bought a joint stake in Nambrew last year and this month finalised a joint sales, marketing, distribution venture in South Africa that is set to challenge home-grown giant SABMiller in the lucrative premium beer sector.

"The premium beer category in South Africa has become the object of intense competitor activity subsequent to the (Nambrew) group commencing the distribution of the Heineken brand," Nambrew said. "This has necessitated an additional marketing investment in Windhoek Lager in South Africa to further augment brand equity, volume and value growth over the long term," it added.

Beer revenues were up to N$786 million from N$645.7 million, although revenues from soft drinks fell to N$119 million from N$200.

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