Meatco suffers N$118m loss
• Significant uncertainty about continuation of operations
The auditors believe Meatco's losses would have been much greater if government had not offered it a N$86 million lifeline.
During the past fiscal year, Meatco incurred a loss of N$118 million, with auditors from Grand Namibia saying the organisation has reached a point where it can only continue to exist with government assistance.
The auditors believe there are significant uncertainties about Meatco as a going concern, and that the institution's losses would have been much larger (around N$204 million) if government had not provided it a lifeline of N$86 million.
This is because Meatco's total assets minus total liabilities, or equity, would be in the negatives without this funding. Currently, its equity stands at nearly N$65 million, and its debt burden is N$670.7 million, with the Development Bank of Namibia (DBN) bearing the greatest risk.
However, Meatco's net loss after tax improved from N$205.1 million in the previous fiscal year to the current N$118 million, with revenue also increasing by 15% - from N$752 million to N$865 million.
This according to a media statement issued over the weekend following a producers' annual general meeting held outside Grootfontein on Friday.
During the event, the institution's annual report was presented to producers, with Meatco stating that progress has been made - despite low throughput in its abattoir and a weakening of the Namibian dollar-euro exchange rate.
COMPETITIVE PRICES
Meatco said over the past three years, throughput in its abattoir has remained a challenge. Nevertheless, the institution has continued to pay competitive prices to producers, significantly higher than the South African parity price. This is reportedly done in an attempt to support primary production and in the national interest.
"In this regard, Meatco has paid N$560 million (and N$492 million in 2022) to producers to protect primary production," the statement read.
Meatco also stated that it sold an additional 590 tonnes of beef this year and improved its revenue by N$116 million compared to 2022.
"During the past fiscal year, Meatco's total financial injection for stakeholders amounted to N$1 billion," it said.
Furthermore, up to 73% of the generated value was reinvested in producers (72% in 2022), 22% in employee costs (24% in 2022), 30% in suppliers (24% in 2022), while 8% was allocated to financial levies (6% in 2022).
– [email protected]
The auditors believe there are significant uncertainties about Meatco as a going concern, and that the institution's losses would have been much larger (around N$204 million) if government had not provided it a lifeline of N$86 million.
This is because Meatco's total assets minus total liabilities, or equity, would be in the negatives without this funding. Currently, its equity stands at nearly N$65 million, and its debt burden is N$670.7 million, with the Development Bank of Namibia (DBN) bearing the greatest risk.
However, Meatco's net loss after tax improved from N$205.1 million in the previous fiscal year to the current N$118 million, with revenue also increasing by 15% - from N$752 million to N$865 million.
This according to a media statement issued over the weekend following a producers' annual general meeting held outside Grootfontein on Friday.
During the event, the institution's annual report was presented to producers, with Meatco stating that progress has been made - despite low throughput in its abattoir and a weakening of the Namibian dollar-euro exchange rate.
COMPETITIVE PRICES
Meatco said over the past three years, throughput in its abattoir has remained a challenge. Nevertheless, the institution has continued to pay competitive prices to producers, significantly higher than the South African parity price. This is reportedly done in an attempt to support primary production and in the national interest.
"In this regard, Meatco has paid N$560 million (and N$492 million in 2022) to producers to protect primary production," the statement read.
Meatco also stated that it sold an additional 590 tonnes of beef this year and improved its revenue by N$116 million compared to 2022.
"During the past fiscal year, Meatco's total financial injection for stakeholders amounted to N$1 billion," it said.
Furthermore, up to 73% of the generated value was reinvested in producers (72% in 2022), 22% in employee costs (24% in 2022), 30% in suppliers (24% in 2022), while 8% was allocated to financial levies (6% in 2022).
– [email protected]
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