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 31 March 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% 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% 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.”
Natbrew expects to publish its financial statements for the fiscal year that ended on March 31, 2023, on or around July 25, 2023 – Harare