Overview

Name: National Breweries Plc (Natbrew)

Industry: Beverages, specializing in traditional African beer (TAB)

Founded: 1968

Headquarters: Lusaka, Zambia — Plot 1609/10 Sheki Sheki Road

Stock Listing: Lusaka Stock Exchange (Ticker: NATB)

Products & Brands

National Breweries is best known for its Chibuku range of traditional beers. Main product lines include:

Chibuku Shake Shake — packaged in cartons

Chibuku Super — a pasteurized version with longer shelf life, available in PET bottles and returnable plastic bottles

Other variants include Chibuku Super Extra Malt, Super Banana, and Scud

These products are made primarily from local raw materials such as maize and sorghum, which align with cultural tastes in Zambia.

History & Ownership

The company has roots going back to 1968 and was historically linked with the larger brewing industry in Zambia.

In 2017, Delta Corporation Limited (Zimbabwe) acquired about 70% of its shares, taking control of the business.

Since then, it has undergone restructuring and operational changes to improve efficiency and competitiveness.

Financial Performance & Recent Trends

Revenue: The company’s revenue has fluctuated, with periods of growth offset by cost pressures.

Losses: In recent years, National Breweries has reported consistent losses at the operating and net income levels.

Equity & Assets: There have been instances of negative equity, indicating financial strain.

Stock Performance: The share price has been volatile, reflecting investor concerns about profitability and sustainability.

Liquidity: The company has faced cash flow and working capital challenges, raising questions about its long-term viability.

Strengths & Competitive Position

Cultural relevance: Chibuku is a household name in Zambia with strong cultural significance.

Product differentiation: Pasteurized versions and PET/returnable bottles extend shelf life and expand distribution.

Distribution footprint: National Breweries has built a wide customer base, particularly in the lower-income and rural markets.

Challenges & Risks

Sustained losses and negative equity put pressure on operations and investor confidence.

Rising input costs for raw materials and energy, coupled with currency volatility, erode margins.

Competition from both traditional brewers and clear beer producers limits growth potential.

Regulatory and tax burdens such as excise duties add to financial strain.

Liquidity constraints make it harder to reinvest, modernize, and expand.

Governance & Management

Leadership has seen changes in recent years, with the board comprising both executive and non-executive directors.

Governance practices have been under scrutiny, especially around independence and oversight.

Recent Developments

In the past few years, the company reported a significant increase in volumes, but profitability has not followed suit.

New packaging innovations, such as PET bottles and sharing-sized packs, have been introduced to strengthen consumer appeal.

Despite these efforts, the company continues to face financial headwinds.