Windhoek-Meatco recorded revenue of N$1.694 billion in the 2016/17 financial year, 6.2 percent down from the previous financial year, while the corporation recorded revenue of N$1.687 billion, 6.3 percent down from the previous reporting period.
In volume, the group recorded an overall decrease of 21.7 percent compared to the previous year in the number of cattle slaughtered south of the veterinary cordon fence.
According to the annual financial report for the financial year 2016/17, released last week, capital spent came to N$47.8 million, adding an investment up to N$189.5 million over the past three years in upgrading and expanding infrastructure.
The group retained working capital of N$420 million. After settling long-term debts, the group retained N$87 million in cash at the end of the financial year.
The group generated a net profit of N$19.3 million after tax as compared with a profit of N$13.1 million in the previous year.
The unfavourable climatic conditions and resultant water crisis in Namibia contributed to a challenging year for the group and the corporation.
Meatco paid 53.12 percent of its beef revenue to its producers.
The group retained working capital of N$420 million. After settling long-term debts (N$37 million), the group retained N$87 million in cash at the end of the financial year.
Consequently, Meatco’s financial position can be defined as healthy at the present time, with the only significant concern being the limited number of cattle available for slaughter due to three consecutive periods of drought.
Meatco could meet its full 1,600-tonne quota to Norway, proving to Norwegian and Namibian authorities that Meatco is capable of fully utilising the quota, extracting maximum value from its markets and passing on the benefits to its producers.
“Despite going through trying times, Meatco is confident that we are adequately funded and have the necessary reserves to meet our commitments, supporting farmers and Namibia at large now, just as we have in the past,” the company says.
The newly introduced mobile slaughter unit (MSU) slaughtered 980 cattle between August 18, 2016 and June 19, 2017.