Decline in consumer spending affects NBL profits

Decline in consumer spending affects NBL profits
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The Namibia Breweries Limited's (NBL) profits have declined for the financial year ended 30 June 2018, as consumer demand was weakened by pressure on disposable income.
NBL announced the group's consolidated results for the year ended 30 June 2018 on the Namibia Stock Exchange (NSX) last week.
The company said the muted consumer demand led to a 5,5% decrease in sales volumes.
It said its total revenue decreased from N$2,7 billion in June 2017 to N$2,69 billion at the end of June 2018.
The company said the business experienced muted consumer demand with pressure on disposal income contributing to a pervasive discount culture in the Namibian trade.
Income generated from beer sales dropped by N$40,9 million at the end of June 2018, recording revenue of N$2,5 billion from N$2,54 billion in June 2017.
The company explained that the demand from South Africa remained strong and higher volumes than the minimum contracted were delivered to Sedibeng Brewery in Johannesburg.