NB Annual Report 2023

ANNUAL
R E P O RT
2023
How we report
This is the Annual Report of National Breweries Plc for the
year ended 31st March 2023. It includes information that
is required by the Securities and Exchange Commission
(SEC). This information may be updated or documented
with the SEC or later amended if necessary, although
National Breweries Plc does not undertake to update any
such information. The Annual Report is made available to all
shareholders on the Lusaka Stock Exchange website (www.
luse.co.zm). This report includes names of National Breweries
Plc products, which constitute trademarks or trade names
which National Breweries Plc owns or which others own
and license to National Breweries Plc for use. In this report,
the term ‘Company’ refers to National Breweries Plc, except
as the context otherwise requires. National Breweries Plc’s
Financial Statements have been prepared in accordance with
International Financial Reporting Standards (IFRS) as issued
by the International Accounting Standards Board (IASB).
References to IFRS hereafter should be construed as references
to IFRS as issued by the IASB. Unless otherwise indicated,
all financial information contained in this document has been
prepared in accordance with IFRS.
National Breweries Plc is the leading producer of Traditional

African Beer (TAB), namely Shake Shake, Super Banana
and Scud. They also produce a pasteurized product with a
long shelf life which gives it a distinct advantage in terms of
geographic reach.
National Breweries Plc | Annual Report 2023 2

CONTENTS
Financial Highlights 4
Business Review 5
Chairman’s Report 6
Managing Director’s Report 8
Corporate Governance and Sustainable Development 11

Board of Directors 12
Management Committee 14
Corporate Governance Statement 16
Environmental, Social and Governance Report 20
Directors’ Report 22
Statement of Responsibility for the Annual Financial Statements 24
Report of the Independent Auditor 25
Financial Statements 30
Statement of Profit or Loss and Other Comprehensive Income 31
Statement of Financial Position 32
Statement of Changes in Equity 33
Statement of Cash Flows 34
Notes 35
Principal Shareholders and Distribution of Shareholders 69
Directorate and Corporate Information 70
Glossary of Terms and Abbreviations 71

FINANCIAL HIGHLIGHTS
9 months 15 months Year Year Year Year

ended ended ended ended ended ended
December March March March March March
2017 2019 2020 2021 2022 2023
Company turnover (Incl. Excise Duty) 242,034 367,536 300,076 378,571 313,488 338,105
Company revenue (Excl. Excise Duty) 214,927 327,528 226,552 280,942 231,654 254,298
Operating profit/ (loss) 148 (21,895) (69,912) (122,075) (133,687) (194,317)
Profit/ (loss) before income tax (7,935) (45,536) (110,805) (187,049) (120,282) (237,597)
Profit/ (loss) for the year 1,038 (37,642) (114,170) (193,326) (120,290) (237,599)
Total assets 326,339 302,989 283,029 216,211 217,233 251,485
Current liabilities 72,601 156,660 240,391 139,414 (497,075) 723,342
Shareholder’s funds 158,971 121,329 7,159 (186,167) 306,455 (544,057)

Business
Review

CHAIRMAN’S REPORT
The first phases of the business

strategic turnaround were
successfully implemented,
and the business saw an
increase in its customer
universe, distribution
footprint and
ultimately enjoyed an
increase in volumes
over prior
year of 28%.
Richard Mazombwe
Revenue growth was however slower at 8% as the offerings.

business started building the base of customers, and As the business executed its domestic volume
volume through the economy products during the recovery plan, it managed to penetrate the export
first half, but saw an acceleration of acceptance of the market, selling Chibuku Super to Delta Beverages
mainstream products during the second half of the in Zimbabwe to assist in covering supply constraints
financial year. they experienced during the year. The export
opportunity helped the business identify areas of
ACHIEVEMENTS process improvements in producing an export quality
I am excited to mention that the relaunch of the eco- product which has also benefited the domestic market
friendly returnable Scud pack was successful and has with respect to an improvement in the quality that the
anchored the volume performance of the business Company prides itself in.
during the financial year under review. Even more
exciting was the launch of the flavoured variant of CHALLENGES
Chibuku Super, Chibuku Super Banana, in November Though inflation was generally stable during the
2022. The acceptance of this product has exceeded financial year the business experienced the negative
our expectations and we are looking forward to its impact of price increases of core raw materials such
support of business volumes in addition to our other as maize for production, diesel for distribution, as

well as the exchange rate depreciation in the and vacated their positions as Managing
last quarter that significantly increased the Director and Finance Director/Company
cost of imported materials and affected the Secretary respectively. Their contribution
Company’s margins. and leadership during the turbulent years
This financial year was the first full year of the business, especially during the
of the increase on the excise duty tariff of 25 COVID-19 pandemic, is appreciated and we
Ngwee per litre. This increase has further wish them well in their future endeavors.
squeezed the margins of the business as the As a result, Mr Kenneth Mapingire and
market is not able to absorb a price increase Mr Simbarashe Banga were appointed
due to the constrained disposable incomes. Managing Director and Finance Director/
Company Secretary respectively on the 1st
OUTLOOK of July 2022. We wish the gentlemen well
The macroeconomic outlook, though stable, as they continue executing the turnaround
continues to have an air of uncertainty in strategy of the business.
relation to the sovereign debt resolution plan
as well as resolution of the disputes impacting APPRECIATION
production at key copper producing assets On behalf of the Board, and on my own
which is therefore impacting current output behalf, I wish to thank Delta Corporation,
and foreign currency receipts. the major shareholder, management and
The stabilisation of the grain market, employees for their continuing effort in
particularly maize, is critical to the fortunes tackling the challenges the company has
of the business. A longer-term view of how to endured to return to viability. I also wish
insulate the business from future disruptions to thank my fellow directors for their
of maize supply is already in motion. wise counsel, our customers, consumers,
The Company continues to find solutions suppliers and stakeholders for their ongoing
to make value chains resilient in the face support.
of the ongoing conflict between Russia and
Ukraine which has had huge ramifications to
global supply chains.
The Company is however excited with
the coming together of the turnaround Richard Mazombwe
strategy and is looking forward to increasing CHAIRMAN.
output to satisfy the demand of consumers
and customers of the quality and authentic
sorghum based traditional African beer.
Recapitalisation will be imperative to
provide the business the platform to succeed
on the foundation that was setup during the
financial year.
DIRECTORATE
On the 30th of June 2022, Mr Martin R.
Makomva and Mrs Vongai Chiwaridzo retired

MANAGING DIRECTOR’S REPORT
Sales volumes grew 28% compared

to prior year despite the headwinds
faced in the trading environment.
This rebound is attributed
to the introduction of new
and innovative products as
well as the expansion of the
domestic serviced market
footprint.
Kenneth Mapingire
ENVIRONMENTAL REVIEW control with year-on-year inflation closing the

Sales volumes grew 28% compared to prior year despite financial year in the upper single digits.
the headwinds faced in the trading environment. This • The exchange rate was stable and firm for the
rebound is attributed to the introduction of new and first half of the financial year but depreciated
innovative products as well as the expansion of the significantly in the second half. The weakening
domestic serviced market footprint. exchange rate was responsible for increases in
prices of imported packaging materials and other
• COVID-19 trading restrictions for liquor selling inputs.
outlets were fully relaxed in the second quarter • The maize supply bottleneck from the onset of
of the financial year resulting in an increase in the rainy, season resulted in an increase of +60%
drinking occasions and improved market access. on the price of the commodity.
• The country continued to feel the effects of • Speculative tendencies, coupled with the currency
the Russia-Ukraine conflict that disrupted depreciation resulted in rapid price escalation of
global supply chains, lengthened delivery maize, exchange losses on our foreign obligations
times, escalated the cost of imported packaging and imported inflation further eroding the already
materials, inputs and logistical costs. weak margins.
• Inflationary pressures were largely kept under

BUSINESS PERFORMANCE REVIEW to 80% of the Company’s sales volumes,
Due to the need to manage affordability and underpinning the value the business attaches
competitiveness, our product prices remained to innovation.
unchanged throughout the year despite
rising raw material costs. The 8% increase in MARKET DEVELOPMENTS
gross revenue was driven by volume growth Various investments in plant and equipment
of our low value bulk offerings which was as well as liquid innovations were instituted
not enough to cover the full effects of cost during the year resulting in the business
escalations. churning out the only authentic sorghum-
In addition, the hike in the traditional based traditional beers in the country that
beer excise duty from 15 Ngwee to 25 Ngwee helped us to differentiate our offerings from
per litre implemented effective 1st January competition and offer consumers superior
2022 was not passed on to consumers due quality products at competitive prices.
to the potential impact on pricing of our Customer service was also improved
products against unregulated and non- through increasing and intensifying direct
compliant competitor offerings. As such, the store deliveries, expansion of the depot
business posted an operating loss of K237.6 footprint as well as creation of additional
million compared to K120.3 million for the strategic third-party distribution channel
comparative prior period. partners that helped to improve the
The Company continued to pursue a volume accessibility of our products.
growth strategy through market expansion In the first nine months of the financial
and product innovation. Through these year, whilst redeveloping the local demand
initiatives, the business has created a for our products, excess production capacity
strong base of retail outlets and a national was channeled to exporting the long shelf
distribution network that will act as an life Chibuku Super to Zimbabwe, generating
enabler for sustainable future volume growth. foreign currency that helped to cover
There was a ramp up in production foreign obligations. Due to the success of
and market penetration of the 1.5l Scud the above initiatives in redeveloping the
which was re-introduced in the previous local market, in the last three months of the
financial year, with significant investments year, the Company suspended exports and
in circular packaging materials as the pack commenced the importation Chibuku Super
was rolled out. Opportunities still exist for Banana from Zimbabwe as we could no
traders to moderate pricing of this pack to longer satisfy the requirements of the local
recommended levels. market that exceeded expectations.
A new and innovative brand, Chibuku
Super Banana, was launched in November COMPETITION
2022 to expand the business’ product The trading environment remained very
portfolio, offer consumers a wider choice, competitive and dominated by unregistered
appeal to a new consumer market segment and unregulated illicit alcohol players
and open new revenue streams of income. offering bulk beer and cheap spirits,
Market acceptance of the new offering was undercutting formal businesses that are
high and volumes have more than exceeded contributing to the fiscus. The prevalence of
expectation. unregulated alcohol players in the industry is
The re-introduction of the 1.5l Scud and a cause for concern amidst the growing rates
the creation of a new and vibrant category of alcoholism and substances abuse in the
through the launch of Chibuku Super community. The business hopes that current
Banana, with a wider and deeper market engagements with authorities will result in a
reach, helped the company to end the year levelling of the playing field in the industry
with a richer sales mix anchored on high which increases compliance and increase
value packaged products with superior fiscus revenue through widening of the tax
margins. New products introduced in under base.
a year closed the year accounting for close

OUR PEOPLE
We prioritised development of our staff
through targeted skills training initiatives,
staff exchanges and secondment programs,
taking advantage of synergies within our
parent company, Delta Corporation. We
also rolled out a graduate development
programme to broaden skills base and build
a pipeline of internal candidates with the
capacity to run the business into the future.
The graduate trainees will be exposed to the
wider aspects of the business and will enjoy
exploiting synergies within the Delta group.
OUTLOOK
We have embarked on an accelerated
business growth turnaround strategy
that should see the business returning to
profitability in the short to medium term. We
will continue driving volume growth through
innovation, expansion of retail, distribution,
and manufacturing footprint strategies
to tap into new markets in the country. In
addition, managing the overhead cost base
of the business, enhancing efficiencies in
production, distribution and supply chain
will remain sacrosanct on this journey.
Kenneth Mapingire
MANAGING DIRECTOR

Corporate
Governance &
Sustainable Development

BOARD OF DIRECTORS
Richard Mazombwe Ackim Lupempu Chalwe Natasha Chiumya Matlhogonolo Mothibedi

BAcc, FCCA BAcc, FCCA AHCZ; MBA Valela
A Chartered Accountant Ackim holds a Bachelor Together with her part- B Tech (Accounts),
with over 37 years’ expe- of Arts Degree in Ac- ner, Natasha established CA(Z) Matlhogonolo is
rience in the accountancy countancy from the Uni- Zambia’s first niche prac- the Group Chief Execu-
and consulting profes- versity of Zambia and is a tice law firm, Folotiya & tive Officer of Delta Cor-
sions gained across in- Fellow of the Association Chiumya, specialising ex- poration Limited since
dustries in Zambia, Ma- of Chartered Certified Ac- clusively in corporate and 1 July 2021. He previ-
lawi and Botswana. Since countants (ACCA) and commercial matters. ously held the position
2010 has focused on lead- the Zambia Institute of She has extensive of Executive Director -
ership development and Chartered Accountants experience in business Finance from June 2011
corporate governance. (ZICA). climate reform having until assuming the role of
He is a non-execu- Ackim has over 30 worked with bilateral Chief Operating Officer
tive director in a number years’ experience cover- and multilateral donors on 1 April 2021.
of companies. Richard ing external auditing, in- as well as the Govern- He joined the Delta
was the Senior Partner ternal audit and financial ment of Zambia, through in December 1996 as an
of PricewaterhouseCoo- management, that started the Ministry of Com- Accountant at the then
pers Zambia from 2003 with Deloitte & Touche merce Trade and Indus- National Breweries Di-
to 2010. A Fellow of the Zambia and later with try. Her legal experience vision. He has occupied
Association of Chartered Deloitte & Touche Bo- as in-house counsel for various roles of increas-
Certified Accountants tswana. In between his PricewaterhouseCoopers ing seniority operational
he graduated from the Deloitte Botswana career, covered a wide range of finance and accounting,
University of Zambia in which was from 1995 to corporate and commer- becoming the Group
1981 witha Bachelor of 1999, Ackim worked for cial matters. Treasurer in 2003.
Accountancy degree. the central bank of Bo- Having built a signif- He sits on the boards
tswana (Bank of Botswa- icant property develop- of the Company’s subsid-
na). He later joined FNB ment practice within the iary companies and as-
Botswana, as Chief Fi- law firm, she is the found- sociates; African Distill-
nancial Officer and mem- er of Diaspora Connect ers, Nampak Zimbabwe,
ber of the board till 2018. Limited which is aimed at National Breweries Plc
More recently Ackim revolutionising the way Zambia, United Nation-
served as the Chief Ex- Zambians abroad buy al Breweries (RSA) and
ecutive Officer of Micro property back home. Na- Schweppes Holdings Af-
Finance Zambia Limited, tasha holds an honours rica.
a wholly owned subsid- degree in law from the
iary of Atlas Mara Bank University of Warwick,
from 2021 to 2022. He is UK and as a former Beit
currently the Managing fellow, has a Master’s in
Partner of ALC Business Business Administration
Consulting Limited. (MBA) from the Univer-
sity of Cape Town, South
Africa.

BOARD OF DIRECTORS
Dr Munyaradzi Godfrey Kenneth Mapingire Simbarashe Banga

Nyandoroh B.B.S, MBA (UZ), B. Comm (Hons)
BSc (Hons) (UZ); MSc Diploma Accounting (NUST),
(UZ); PhD (KENT) Marketing Management Hons B. Compt
Dr Munyaradzi was ap- (IMM) (UNISA), ACCA
pointed the Operations Kenneth was appoint- Simbarashe was appoint-
Director for Delta Cor- ed Managing Director of ed Finance Director on 1
poration Limited’s Sor- National Breweries Plc July 2022.
ghum Beer cluster over- on 1 July 2022. He first He started his career with
seeing the sorghum beer joined the group in the Deloitte & Touche Char-
operations in Zimbabwe, then Chibuku Brewer- tered Accountants (Zim-
Zambia and South Afri- ies Division in 1997 and babwe) where he served
ca. He was most recently left in 2003 to pursue his clients over a cross sec-
the General Manager – career interests with oth- tion of industries over
Lager Beer division since er FMCG businesses in twelve (12) years before
April 2014. Zimbabwe and Malawi. joining the Delta Bever-
He joined the business He re-joined the group ages as a Finance Manag-
in 1986, working in the in 2013 and held senior er in August 2017 at the
technical department of positions in Commercial Lager business unit. He
the then Chibuku Brew- and Operations for the was appointed Finance
eries Division. He left Sorghum Beer business. Executive in April 2018.
the organisation in 1992 Prior to his appointment Simbarashe holds an
to pursue further studies as Managing Director, he Honours is Accounting
and re-joined in 1996 as was Regional Manager Science from the Uni-
Technical Director for for the Northern Region versity of South Africa
Chibuku Breweries. He in the Sorghum Beer divi- as well as a Bachelor of
was appointed General sion of Delta Beverages. Commerce Honours ma-
Manager for the Agricul- He has extensive ex- jor in Accounting from
tural Services department perience in the FMCG the National University
in 2002, and as General sector spanning over 30 of Science and Technol-
Manager – Beverages Op- years across Southern Af- ogy. He is a member of
erations for the Southern rica in senior roles. the Association of Char-
Region and thereafter the Kenneth holds a Bach- tered Certified Accoun-
Northern Region. elor of Business Studies tant (ACCA) and served
degree as well as Master’s as a member of the ACCA
in Business Administra- Network Panel in Zimba-
tion from the University bwe.
of Zimbabwe. He holds
a post graduate diploma
in Marketing Manage-
ment from the Institute of
Marketing Management
(IMM) (South Africa).

MANAGEMENT COMMITTEE
The profiles of the Managing and Finance Directors are included under Board of Directors.
Joseph Takayindisa Boniface Katsumbe Joseph Chona

BSc .Gen.(Chem. & Bio. B. Tech (App Sc) (UZ) B.A., MZIM
Sci.) - University of Zim, Brewery Manager - North Commercial Executive
Dipl. Brew. (IBD - UK) Boniface joined National Joseph is a sales and
Brewery Manager – Breweries Plc in October marketing professional
South 2019 from Delta Corpo- with broad experience in
Joseph joined National ration Limited. FMCG and ICT sectors.
Breweries Plc in Novem- He began his career in He began his career at
ber 2019 from Delta Cor- 1990 at Olivine Indus- Zamtel as Management
poration Limited. tries, a HJ Heinz affiliate, Trainee in 1997 and later
He joined Delta in De- in Harare, Zimbabwe as held positions of Market-
cember 2009 working in a graduate trainee and ing Manager in 2003 and
the Quality Assurance rose to become the Fac- Sales & Customer Care
department of the Lager tory Manager for Soaps, Manager in 2005.
manufacturing business Oils & Fats. In 1997 he In 2010 he joined Eco-
unit before moving to the joined Delta Corpora- bank as Head of Brand
Maheu business unit, ini- tion Limited in the then and Communications af-
tially as a senior quality regional investments and ter which he transitioned
manager before assuming project management di- to Zambian Breweries
the role of manufacturing vision, Chibuku Regional Plc as Sales Manager for
development. Investments, as Technical Beer in 2012. In 2014
In December 2012 he Services Manager and he joined Lafarge Zam-
moved to the Chibuku worked in Mozambique, bia Plc as National Sales
business unit where he Kenya and Zambia. Manager. In 2015 he
assumed the role of Pro- Boniface left the or- joined KickStart Interna-
duction Manager at the ganization briefly from tional as National Sales
pilot Chibuku Super 2001 to 2003, rejoining in Manager and later held
plant in Zimbabwe. He 2004 and has held several the position of Country
then rose to being Plant positions in Soft Drinks, Manager for Zambia up
Manager and eventual- Lager and Sorghum Beer to 2017.
ly appointed as Brewery Manufacturing business- His last position prior
Manager in April 2017. es. to joining National Brew-
Joseph is a holder of a Prior to his appoint- eries was as Head of In-
BSc Degree majoring in ment, Boniface was the direct Sales at Vodafone
Chemistry & Biological Plant Manager for the (Z) Ltd.
Sciences from the Uni- Delta Coca-Cola facility Joseph is a holder of a
versity of Zimbabwe. He in Bulawayo, Zimbabwe. Bachelor of Arts in Pub-
is also a member of the He holds a B.Tech [App lic Administration. He is
Institute of Brewing & Sc] from the University a member of Zambia In-
Distilling (UK). of Zimbabwe. stitute of Marketing.

MANAGEMENT COMMITTEE
Ellah Mwase Chanda Lungu-Sichizya Ntantabutali Kabaghe

B.A., MZIHRM B.B.A, MSc. Marketing B.Eng (Mechnical Engi-
Human Resources Busi- Management, Diploma in neering)
ness Partner Marketing (CIM) National Workshop Man-
Ellah is a Human Re- Brand & Corporate Af- ager
sources professional with fairs Manager Ntantabutali joined Na-
experience in financial Chanda joined Nation- tional Breweries Plc in
services, insurance, con- al Breweries Plc in June December 2021.
struction and FMCG in- 2018 as a Channel Devel- He began his career at
dustries. opment Manager before Mercury Lines where he
She began her career becoming the Brand & developed as a workshop
at Focus Group of Corporate Affairs Man- engineer before becoming
Companies in 2013 ager. the Workshop Manager.
as Human Resources She commenced her He holds a Bachelor of
Assistant and rose to the career as a management Engineering in Mechani-
position of Group Human trainee with Investrust cal Engineering from the
Resources Specialist in Bank Plc before joining University of Zambia and
2015. She later moved to Zambian Breweries Plc. is a member of Engineer-
Brick World Construction She occupied several po- ing Institute of Zambia
Company in 2018 where sitions in the commercial and Zambia Chartered
she managed the human department including Institute of Logistics and
resources department Key Account Manager, Transport.
before joining National Sales Manager and Chan-
Breweries Plc in March nel Execution Manager.
2019. She holds a Bachelor
She holds a Bachelor of Business Administra-
of Arts Degree in Public tion degree from the Uni-
Administration from the versity of Namibia, a Di-
University of Zambia and ploma in Marketing from
is a member of Zambia the Chartered Institute
Institute of Human of Marketing (CIM), UK
Resource Management. and a Masters in Market-
ing Management from the
University of Lusaka. She
is a member of Zambia
Institute of Marketing.

CORPORATE GOVERNANCE STATEMENT
The Board comprises of an independent

Non-Executive Chairman, two (2)
independent Non-Executive
Directors, two (2) Non-
Executive Directors affiliated
to the parent company, the
Managing Director and the
Finance Director.
Simbarashe Banga
CORPORATE GOVERNANCE STATEMENT ance of skills, knowledge of the business and the en-
Below is a summary of the Company’s Corporate vironment.
Governance framework:
The Chairman of the Board provides leadership and
BOARD COMPOSITION AND INDEPENDENCE ensures the effectiveness of the Board. The role of the
The Board comprises of an independent Non-Execu- Non-Executive Directors is to enhance the Board’s
tive Chairman, two (2) independent Non-Executive independence of judgement in line with best prac-
Directors, two (2) Non-Executive Directors affiliated tices and market considerations. The Non-Executive
to the parent company, the Managing Director and Directors also monitor the reporting of company per-
the Finance Director. formance while providing constructive challenge to
the Executive Directors and senior management of
OPERATIONS OF THE BOARD the Company.
During the year under review, the Board of Directors
sat four (4) times to review strategic priorities and The Board members retire and are re-elected at the
the control environment and was assisted by the Au- Annual General Meeting in line with the Company’s
dit and General Purpose Committees. Both the Board Articles of Association and the Companies Act. The
and Committees comprise members with a broad bal- appointment of the Statutory Auditor and their remu-

neration is approved by the shareholders at the Annual tion and the External Auditors and makes
General Meeting. recommendations to the Board.
The Audit Committee is composed of three

BOARD COMPOSITION members i.e. two Non-Executive Directors
and the Managing Director.
Richard Mazombwe(Mr.)*Independent Non-Executive
Ackim L. Chalwe (Mr.) Independent Non Executive The terms of reference for the Audit Com-
Natasha Chiumya (Ms.) Independent Non-Executive mittee are as follows:
• Review of the annual and half year finan-
Matlhogonolo M. Valela (Mr.) Non-Executive
cial statements as well as any results an-
Munyaradzi G. Nyandoroh (Dr.) Non-Executive nouncements before they are submitted
Martin R. Makomva (Mr.)** Executive to the Board;
• Examination and review of the internal
Vongai Chiwaridzo (Mrs.) ** Executive
control environment and the company’s
KennethMapingire(Mr.)*** Executive statement on internal controls;
Simbarashe Banga (Mr.)*** Executive • Review of the effectiveness of the inter-
nal audit function throughout the year;
* Chairman • Review the effectiveness of the system
** Retired on 30th June 2022
for monitoring compliance with laws
and regulations;
*** Appointed on 1st July 2022
• Recommend to the Board the appoint-
ment of the External Auditors; and
• Discuss and agree the audit plan with
the Internal and External Auditors at
DATES OF MEETINGS AND ATTENDANCE each meeting.
The following meetings were held during the period
under review: RISK MANAGEMENT
The focus of risk management in National
Breweries Plc is on identifying, assessing,
19th May, 2023
21st Oct, 2022
20th Jan, 2022
22nd Jul, 2022
managing, and monitoring all known forms

of risk across the Company. The manage-
ment of risk and loss control is decentralised
and complies with the Company policies on
risk. An appropriate risk analysis framework
is used to identify the major risks which the
Mazombwe, Richard (Mr.) √ √ √ √ Company must manage in serving its stake-
Chalwe, Ackim L. (Mr.) √ √ √ √ holders. A risk analysis is performed regular-
ly and is reviewed by the Audit Committee.
Chiumya, Natasha (Ms.) X √ √ √
Valela, Mathlogonolo M. (Mr) X X √ √ INTERNAL AUDIT
Nyandoroh, Munyaradzi G. (Dr.) √ √ √ √ Internal Audit services are outsourced from
Mapingire, Kenneth (Mr.) * √ √ √ √ the parent company, Delta Corporation. The
Internal Audit function conducts regular
Banga Simbarashe (Mr.) * √ √ √ √ audits in accordance with an audit plan ap-
* Appointed on 1st July 2022 proved by the Audit Committee and reports
its findings to the Management Committee
THE AUDIT COMMITTEE and to the Board through the Audit Commit-
The Audit Committee assists the Board in fulfilling its tee.
oversight responsibilities regarding financial reporting,
risk management, and internal controls and deliberates
comprehensive reports from the Internal Audit func-

DATES OF MEETINGS AND DATES OF MEETINGS AND ATTENDANCE
ATTENDANCE The General Purpose Committee met two (2) times
The Audit Committee met twice during the during the year.
year.
18th May ,2023

18th May 2023
20th Oct, 2022
20th Oct, 2022

Chalwe, Ackim L. (Mr.) – Chairman √ √ Valela, Mathlogonolo M. (Mr) – Chairman X √
Nyandoroh, Munyaradzi G. (Dr.) √ √ Chiumya, Natasha (Ms.) √ √
Mapingire, Kenneth (Mr.) * √ √ Mazombwe, Richard (Mr.) √ √
* Executive Director Nyandoroh, Munyaradzi G. (Dr.) √ √
Mapingire, Kenneth (Mr.) * √ √
GENERAL PURPOSE COMMITTEE * Executive Director
The Board has a General Purpose Committee
(GPC) comprising four non-executive
directors and the Managing Director.
The terms of reference of the GPC are as fol-

lows:
• To consider and agree all matters relating
to the appointment, terms of service,
remuneration,benefits including share
options, bonus plans and incentive
schemes of the Executive Directors and
members of the Management Committee.
• The Committee is constituted as the
Nomination Committee for the purposes of
considering any nominations for appoint
ment of Directors.
• To consider proposals from management
on matters that give rise to related party
transactions such as management buy
outs,empowerment deals etc.
• Major changes to human resources
policies, industrial relations, staff training
and recruitment policies.

Environmental, Social and Governance Report
National Breweries Plc is committed to a sustainability

development agenda. Our Environmental, Social and Governance
(ESG) initiatives are critical to the delivery of our company
strategy and purpose. Through them, the Company contributes to
the socio-economic development of Zambia.
To enable a sustainable, equitable • Reduce – Through our Group value

future for all, we have developed goals chains, the business continues to seek
and ambitious programmes that build opportunities of reducing its carbon
environmental resilience, reduce the harmful footprint by working with suppliers on
consumption of alcohol, promote inclusive better and more efficient methods of
growth, employment creation, community producing our packaging material.
empowerment and develop sustainable
livelihoods across our value chain.
We believe that the future of business and
of the planet is inclusive. We do our part to Circular Packaging Contribution To Volume
tackle shared global and local environmental 73%
and social challenges. Our commitment to
improving the communities we are a part 57%
of remains unwavering. In doing this, we
collaborate with governments, value chain
partners and other stakeholders. We look
ahead to the coming year and beyond with a 27%
renewed vision and focus to create a future
21%
with more cheers through greater shared
prosperity.
PET & Carton Returnable
Our strategic ESG priorities are:
FY22 FY23
• Circular Packaging;
• Water Stewardship;
• Smart Agriculture;
• Smart Drinking and Moderation; and WATER STEWARDSHIP
• Diversity and Inclusion. Our ambition
We are consumers of water in our breweries
CIRCULAR PACKAGING and we commit to using this precious resource
Our Ambition sparingly.
We will continue investing and growing in our Water quality and availability are critical to
returnable packaging offering, and support brewing and packaging our products. Without
recycling initiatives for our PET and carton water, there are no beverages. We must also be
packs. responsible stewards of water supplies for the
• Reuse – In the current year, we increased communities where we operate. We continue
the volumes sold in returnable/circular with our efforts to drive water efficiencies in
packaging from 27% in the prior year to our operations.
73%. Water being a key ingredient in all
• Recycle – We will continue to secure our products is a critical resource for
collaborations with partners in the country people, economies, and our environmental
for the management of post-consumer ecosystems. Water and climate change are
waste for our single-use packaging PET closely linked, with climate change impacting
and carton offerings. availability and quality of this resource.

SMART AGRICULTURE relating to our products remains responsible
Our ambition and above board. This is not only in terms
To develop and grow small-scale farmers of ensuring compliance with all alcohol
involved in our grain value chain to enable advertising regulations but also in terms
them to run profitable diversified agricultural of appropriateness of the messages being
concerns. conveyed.
As a beverage manufacturer, we rely on
agricultural crops to brew our products. We DIVERSITY & INCLUSION
continued to offer a stable market for maize Our people are our enduring advantage.
produced by both commercial and small-scale Our ambition
farmers in the country. We continue to support We continue to foster an inclusive workplace
the increase in profitability, productivity so that under-represented groups are not only
and social development while reducing represented but can succeed in our business.
the environmental impact of agricultural Advancing and empowering women in our
activities. workplace
• The Company has commenced the
SMART DRINKING AND implementation of a diversity and inclusion
MODERATION policy.
Our ambition • To diversify the talent pool of the Company,
Influence social norms and individual the 2022 Graduate Development
behaviours to reduce harmful use of alcohol. Programme class was made up of 50%
We want every experience with our women and 50% men.
products to be positive and are committed • The Company seeks to provide equal
to reducing the harmful use of alcohol. The opportunities in the hiring of new staff to
Company remains steadfast in keeping our fill vacancies in the business.
promise to all customers and consumers that
we will utilise responsible ways of producing,
advertising and selling our products.
The Company, in line with Group policies,
ensures that all messaging and advertising

Directors’ Report
The Directors present their annual report on the affairs of the
Company together with the financial statements and the
auditor’s report for the year ended 31 March 2023.
PRINCIPAL ACTIVITIES NUMBER OF EMPLOYEES AND REMU-

The principal activity of the Company con- NERATION
tinued to be the production, packaging, dis- The total remuneration of employees during
tribution and sale of traditional beverages. In the year amounted to K72.3 million (2022:
the opinion of the Directors, all the activities K69.0 million). The average number of em-
of the Company substantially fall within the ployees for each month of the year was as
same industry categorisation. follows:
GOING CONCERN
The Company has incurred a loss for the year Month 31 March,2023 31March, 2022
of K237.6 million (2022: K120.3 million) and April 540 470
its current liabilities currently exceed its cur- May 540 464
rent assets by K651.7million (2022: K471.3 June 536 465
million). This has raised a material uncer- July 572 462
tainty about the ability of the Company to August 572 456
continue as a going concern. However, based September 600 468
on the Company’s projected cash flows and October 605 474
pledged continued financial support by the November 607 498
major shareholder, Delta Corporation Limit- December 627 507
ed, the Directors believe that the Company January 636 507
will continue as a going concern and that it February 630 468
will be able to meet its financial obligations March 632 534
as and when they fall due.
RESULTS AND DIVIDEND

The loss for the year amounted to K237.6
million (2022: K120.3 million). The Direc-
tors did not recommend payment of any div-
idends (2022: Nil).
DIRECTORS
The following Directors held office during
the year and to the date of this report:
Name Role
Richard Mazombwe (Mr.) Chairperson
Ackim Chalwe (Mr.) Non-Executive Director
Natasha Chiumya (Ms.) Non-Executive Director
Matlhogonolo M.Valela (Mr.) Non-Executive Director
Munyaradzi Nyandoroh (Dr.) Non-Executive Director
Martin Makomva (Mr.)* Executive Director
Vongai Chiwaridzo (Mrs.)* Executive Director
Kenneth Mapingire (Mr.)** Executive Director
Simbarashe Banga (Mr.)** Executive Director
* Retired on 30th June 2022

** Appointed on 1st July 2022 GIFTS AND DONATIONS

The Company made no donations during the
year (2022: 0.01 million).
PROPERTY, PLANT AND EQUIPMENT

The Company purchased property, plant
and equipment amounting to K23.7 million
(2022: K11.7 million) during the year. In
the opinion of the Directors, the recoverable
amount of property and equipment is greater
than the carrying value.
HEATH AND SAFETY

The Company has policies and procedures
to safeguard the occupational health, safe-
ty and welfare of its employees. The year
saw the lifting of COVID-19 public health
guidelines and the resumption of life under
pre-COVID-19 conditions. The business
continues to support booster vaccination
programmes as directed by the government.
SHARE CAPITAL
The authorised share capital of the Company
remains unchanged at 75,000,000 ordinary
shares of K0.01 each, of which 63,000,000
are issued and fully paid.
SUBSEQUENT EVENTS
The subsequent events have been disclosed
under note 28 in the financial statements.
AUDITORS
The Company’s Auditors, Messrs EY Zam-
bia, indicated their willingness to continue
in office. A resolution proposing their reap-
pointment and authorising the Directors to
fix their remuneration will be put to Annual
General Meeting.
By Order of the Board

Company Secretary
Lusaka
Date: 21 July 2023

Statement of Responsibility For the Annual Financial
Statements for the year ended 31 March 2023
The Companies Act, 2017 requires the Directors to prepare financial
statements for each financial year that give a true and fair view of
the state of affairs of the Company as at the end of the financial
year and of its financial performance. It also requires the Directors
to ensure that the Company keeps proper accounting records that
disclose, with reasonable accuracy, the financial position of the
Company. They are also responsible for safeguarding the assets
of the Company. The Directors are further required to ensure
the Company adheres to the corporate governance principles or
practices contained in Part VII Sections 82 to 122 of the Companies
Act, 2017.
The Companies Act, 2017 requires the Directors to prepare financial statements for each financial
year that give a true and fair view of the state of affairs of the Company as at the end of the financial
year and of its financial performance. It also requires the Directors to ensure that the Company
keeps proper accounting records that disclose, with reasonable accuracy, the financial position of the
Company. They are also responsible for safeguarding the assets of the Company. The Directors are
further required to ensure the Company adheres to the corporate governance principles or practices
contained in Part VII Sections 82 to 122 of the Companies Act, 2017.
The Directors are responsible for the maintenance of adequate accounting records and the
preparation and integrity of the financial statements and related information. The independent
external auditors, EY Zambia, have audited the financial statements and their report is shown on
pages 25 to 29.
The Directors further accept responsibility for the maintenance of accounting records that may
be relied upon in the preparation of financial statements, and for such internal controls as the
directors determine necessary to enable the preparation of financial statements that are free from
material misstatement whether due to fraud or error. In addition, the Directors are responsible for
preparing the Directors report.
The Directors are of the opinion that the financial statements set out on pages 31 to 68 give a
true and fair view of the state of the financial affairs of the Company and of its financial performance
in accordance with International Financial Reporting Standards and the Companies Act, 2017. The
Directors further report that they have implemented and further adhered to the corporate governance
principles or practices contained in Part VII, Sections 82 to 122 of the Companies Act, 2017.
The Directors as highlighted under the Directors’ report, have made an assessment of the ability
of the Company to continue as a going concern and have no reason to believe that the business will
not be a going concern for at least twelve (12) months from the date of this statement.
The auditor is responsible for reporting on whether the financial statements are fairly presented
in accordance with the applicable financial framework described above.
Approval of the financial statements

The financial statements of National Breweries Plc, set out on pages 31 to 68, were prepared by the
Finance Director, a Chartered Accountant, under the supervision of the Audit Committee and were
approved by the Board of Directors on 21 July 2023 and signed on its behalf by:
R. Mazombwe K. Mapingire
Chairman Managing Director

Independent Auditor’s Report
For the year ended 31 March 2023
INDEPENDENT AUDITOR'S REPORT
To the members of National Breweries Plc
Report on the Audit of the Financial Statements

The engagement partner on the audit resulting in this independent auditor’s report
Opinion
We have audited the financial statements of National Breweries Plc set out on pages 31 to 68,
which comprise the statement of financial position as at 31 March 2023, the statement of profit
or loss and other comprehensive income, the statement of changes in equity and the statement
of cash flows for the year then ended, and the notes to the financial statements, including a
summary of significant accounting policies.
Mark Libakeni
In our opinion, the financial statements give a true and fair view of the financial position of
Partner
National Breweries Plc as at 31 March 2023, and of its financial performance and cash flows 21 July 20
Practicing
for the year thenCertificate Number:
ended in accordance AUD/F000397
with International Financial Reporting Standards, and in Lusaka
the manner required by the Companies Act, 2017 and the Securities Act of Zambia, 2016.
Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for
the Audit of the Financial Statements section of our report. We are independent of the Company
in accordance with the International Code of Ethics for Professional Accountants (including
International Independence Standards) (IESBA Code)”) and other independence requirements
applicable to performing audits of financial statements in Zambia, and we have fulfilled our
other ethical responsibilities in accordance with these requirements and the IESBA code. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Material uncertainty related to going concern

We draw attention to Note 5 in the financial statements, which indicates that the Company
incurred a net loss of K237.6 million (2022: K120.29 million) for the year ended 31 March 2023
and, as of that date, the Company's current liabilities exceeded its current assets by K651.6
million (2022: K471.27 million) and deficit in reserves for the year was K544.7 million (2022:
K307.09 million). These events or conditions, along with other matters as set forth in Note 5,
indicate that a material uncertainty exists that may cast significant doubt on the Company’s
ability to continue as a going concern should financial support from lending institutions and the
parent company no longer be available. The ability of the parent company providing the
necessary financial support is also subject to the required regulatory approvals. Our opinion is
not modified in respect of this matter.
Other Matter
The financial statements of National Breweries Plc for the year ended March 31, 2022, were
audited by another auditor who included an emphasis of matter paragraph regarding the
material uncertainties which related to going concern on those financial statements on 05 th June
2022.

Independent Auditor’s Report(Contd)
Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the financial statements of the current period. In addition to the
matter described in the material uncertainty related to going concern section of our report, we
have determined the matter described below to be a key audit matter. This matter was addressed
in the context of our audit of the financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on this matter. For the matter below, our
description of how our audit addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of
the financial statements section of our report, including in relation to these matters.
Accordingly, our audit included the performance of procedures designed to respond to our
assessment of the risks of material misstatement of the financial statements.
The results of our audit procedures, including the procedures performed to address the matters
below, provide the basis for our audit opinion on the accompanying financial statements.
Key Audit Matter How the KAM was addressed in the audit
Impairment of property, plant and equipment
As disclosed in Note 16 of the financial Our procedures included, among others:
statements, an impairment assessment was
performed on property, plant and equipment  Tested the inputs into the cash flow forecast,
carrying amount of ZMW179 million based on including the assumptions relating to revenue
the assumptions disclosed in the Note. growth, such as in particular the forecasted sales
Judgement is required by the directors in volumes, market share and input prices, against
assessing the impairment of the assets, which is historical performance and in comparison, to
determined with reference to the value in use, the forecasted budgeted plans in respect of the
based on the cash flow forecasts. The discounted applicable assets.
cash flow model used to determine the  Recalculated the arithmetic calculations
recoverable amount of the assets is detailed and performed in obtaining the cash flows and value
complex due to judgements and estimation used in use.
in the determination of the inputs into the  Assessed the accuracy of forecasts, based on a
model. Certain key inputs specifically: comparison of historical actual performance
 Revenue growth (including market share and against previous forecasts.
forecasted sales volumes);
 The discount rate, which is based on the We involved our internal valuation Specialists to
weighted average cost of capital. The perform the following.
determination of the weighted average cost  Assessed the appropriateness of the impairment
of capital is highly complex; methodology adopted by Management.
 The Company specific risk premium applied  Reviewed the reasonability of the discount rates
to the discount rate to address the (weighted average cost of capital) applied by
forecasting risk identified in the assets; Management in the computation of the value in
 Exchange rate forecasts; and use.
 Projected sales and input cost prices are  Assessed the reasonability of the growth rates,
subject to volatility and require significant exchange rates and risk premiums applied by
estimation and judgement. Management and the appropriateness of the
terminal value formulae applied in the
This was determined as a key audit matter due computation of the value in use.
to the complexity as described above.

Other information
The Directors are responsible for the other information. The other information included in the
document called the Annual Report, as required by the Companies Act, 2017 which we obtained
prior to the date of this auditor’s report and the Annual Report, which is expected to be made
available to us after that date. The other information does not include the financial statements
and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not
express any form of assurance or conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent
with the financial statements, or our knowledge obtained in the audit, or otherwise appears to
be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the
date of this auditor’s report, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the financial statements

The Directors are responsible for the preparation and fair presentation of the financial
statements in accordance with International Financial Reporting Standards and in the manner
required by the Companies Act, 2017 and the Securities Act of Zambia, 2016 and for such
internal control as the Directors determine is necessary to enable the preparation of the financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors are responsible for assessing the Company’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless the Directors either intend to liquidate
the Company or to cease operations, or have no realistic alternative but to do so. The Directors
are responsible for overseeing the Company's financial reporting process.
Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with ISAs will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain
professional scepticism throughout the audit. We also:
 Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
 Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Company’s internal control.
 Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.

 Conclude on the appropriateness of the Directors’ use of the going concern basis of
accounting and based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Company's ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related disclosures in the financial
statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions
are based on the audit evidence obtained up to the date of our auditor's report. However,
future events or conditions may cause the company to cease to continue as a going concern.
 Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
We communicate with the Directors regarding, amongst other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and
other matters that may reasonably be thought to bear on our independence, and where
applicable, related safeguards.
From the matters communicated with the Directors, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore
the key audit matters. We describe these matters in our auditors’ report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits
of such communication.
Report on other legal and regulatory requirements
Zambia Companies Act; 2017
The Companies Act, 2017 requires that in carrying out our audit of National Breweries Plc, we
report on whether:
 There was a relationship, interest or debt which we as the Company's auditors have in
National Breweries Plc;
 There were serious breaches by the Company's Directors of the corporate governance
principles or practices contained in Part VII sections 82 to 112 of the Companies Act,
2017; and
 There were omissions in the financial statements as regard particulars of loans made to
a Company officer (a director, Company secretary or executive officer of a Company)
during the year, and if reasonably possible, disclose such information in our opinion.
In respect of the above we have nothing to report.

Securities Act of Zambia, 2016
In accordance with Rule 18 of the Securities (accounting and financial reporting requirements)
Rules of the Securities Act of Zambia, 2016 requires that we report whether:
 The annual financial statements of the Company have been properly prepared in
accordance with Securities and Exchange Commission rules;
 The Company has, throughout the financial year, kept proper accounting records in
accordance with the requirements of Securities and Exchange Commission rules;
 The statement of financial position and statement of comprehensive income are in
agreement with the Company's accounting records; and
 Whether we obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purpose of the audit.
In respect of the foregoing requirements, we have no reportable matters.
EY Zambia
Chartered Accountants
The engagement partner on the audit resulting in this independent auditor’s report is;
M ark Libakeni
Partner 21 July 2023
Practicing Certificate Number: AUD/F000397 Lusaka

Financial
Statements
Financial
Statements
NATIONAL BREWERIES PLC
STATEMENT
STATEMENTOF OFPROFIT
PROFITOR ORLOSS
LOSS AND
AND OTHER
OTHER COMPREHENSIVE
COMPREHENSIVE INCOME
INCOME
FOR
For the THE YEAR
year ended ENDED
31 March 2023 31 MARCH 2023
(All amounts are in thousands of Kwacha unless otherwise stated)
Notes 2023 2022

K'000 K'000
Revenue 8 254,298 231,654

Cost of sales (187,134) (194,732)
_________ _________
Gross profit 67,164 36,922
Distribution costs (51,576) (36,346)
Administrative expenses (175,832) (130,968)
Net exchange (losses)/gains 9 (37,845) 45,477
Impairment loss recognised on trade and
other receivables (3,102) (3,296)
Other income 6,874 -
__________ __________
Loss before interest and tax (194,317) (88,211)
Interest income 10 5 123
Finance costs 11 (43,285) (32,194)
_________ _________
Loss before tax 12 (237,597) (120,282)
Income tax expense 13 (2) (9)
_________ _________
Total comprehensive loss (237,599) (120,291)
_________ _________
Basic and diluted loss per share (Kwacha) 14 (3.77) (1.91)

_________ _________
There were no items of other comprehensive income for the year (2022: Nil).
Notes on page 35 to page 68 form an integral part of these financial statements.

STATEMENT
STATEMENTOF OFFINANCIAL POSITION
FINANCIAL POSITION
AS AT 31 MARCH 2023
Notes 2023 2022
K'000 K'000
ASSETS
Non-current assets
Property, plant and equipment 16 179,662 182,127
Intangible assets 17 174 379
_________ _________
179,836 182,506
_________ _________
Current assets
Inventories 18 28,132 20,448
Trade and other receivables 19 19,962 9,993
Current tax 13 - 108
Amounts due from related parties 23 - 3,729
Cash and cash equivalents 20 23,555 3,519
__________ __________
71,649 37,797
_________ _________
Total assets 251,485 220,303
_________ _________
EQUITY AND LIABILITIES
Equity
Share capital 15 630 630
Accumulated losses (544,687) (307,088)
__________ __________
Total equity (544,057) (306,458)
_________ _________
Non-current liabilities
Borrowings 22 630 17,696
Amounts due to related parties 23 71,570 -
__________ __________
72,200 17,696
_________ _________
Current liabilities
Trade and other payables 21 180,656 94,999
Borrowings 22 24,772 33,651
Current tax 13 2 -
Amounts due to related parties 23 517,912 380,415
__________ __________
723,342 509,065
__________ __________
Total liabilities 795,542 526,761
_________ _________
Total equity and liabilities 251,485 220,303
_________ _________
Notes on page 35 to page 68 form an integral part of these financial statements. The responsibilities of the
Notes on page
Company’s 35 towith
Directors pageregard
68 form
to theanpreparation
integral part of financial
of the these financial statements.
statements The
are set out onresponsibilities
page 24. The of the
Company's Directorson
financial statements with regard
pages to68
31 to thewere
preparation
approvedofand
the authorised
financial statements arethe
for issue by setBoard
out onofpage 24. The
Directors onfinancial
statements
21 July 2023onand
pages
were31signed
to 68 on
were behalf by: and authorised for issue by the Board of Directors on 21 July 2023
its approved
and were signed on its behalf by:
R. Mazombwe (Chairman) K. Mapingire (Managing Director)
R. Mazombwe (Chairman) K. Mapingire (Managing Director)

STATEMENT OF CHANGES IN EQUITY
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
Share Accumulated
capital losses Total
K ‘000 K ‘000 K ‘000
Balance at 31 March 2021 630 (186,797) (186,167)
Loss for the year - (120,291) (120,291)

_________ _________ _________
Balance at 31 March 2022 630 (307,088) (306,458)
Loss for the year - (237,599) (237,599)

_________ _________ _________
Balance at 31 March 2023 630 (544,687) (544,057)
_________ _________ _________

STATEMENT OF CASH FLOW
STATEMENT OF CASH FLOWS
Notes 2023 2022

K'000 K'000
Cash flows from operating activities
Loss before tax (237,597) (120,282)
Adjustments for:
Interest income 10 (5) (123)
Interest expense 11 43,285 32,194
Depreciation expense 16 14,835 14,215
Container amortisation 16 11,359 849
Amortisation of intangible assets 17 205 481
Unrealised exchange losses 5,186 5,662
Non-cash expenses included in amounts
due to related parties - 19,931
Impairment loss recognised on
trade and other receivables * 19 - 3,296
__________ __________
Operating cash flows before changes in working capital (162,732) (43,777)
Movement in working capital
Increase in inventories 18 (7,684) (5,576)
(Increase)/decrease in trade and other receivables 19 (9,969) (2,112)
Decrease in tax asset 108 -
Increase/(decrease) in trade and other payables 21 85,657 (27,423)
Increase/(decrease) in amounts due to related parties 141,226 (2,087)
__________ __________
Cash generated from/(utilised in) operations 46,606 (80,975)
Interest received 10 5 123
Interest paid (43,285) (30,411)
Income tax paid 13 - (13)
__________ __________
Net cash generated from/(utilised in) operating activities 3,326 (111,276)
__________ __________
Cash flows from investing activities
Purchase of property, plant and equipment 16 (3,313) (8,569)
Purchase of containers 16 (20,416) (3,098)
__________ __________
Net cash utilised in investing activities (23,729) (11,667)
__________ __________
Cash flows from financing activities
Borrowings repaid 22 (25,945) (38,621)
Borrowings received from related parties 23 71,570 168,717
__________ __________
Net cash flows generated from financing activities 45,625 130,096
__________ __________
Movement in cash and cash equivalents
Increase in cash and cash equivalents 25,222 7,153
Unrealised exchange losses (5,186) (5,662)
Cash and cash equivalents at beginning of the year 3,519 2,028
__________ __________
Cash and cash equivalents at end of the year 20 23,555 3,519
__________ __________
* The impairment loss on trade and other receivables has been disclosed as part of the net movement of trade
and other receivables in the current year as fully disclosed in note 19.
Notes on
National page 35
Breweries Plc to page 68
| Annual form
Report an
2023 integral part of these
34 financial statements.
Notes
NOTES TO THE FINANCIAL STATEMENTS
1. CORPORATE INFORMATION
National Breweries PLC (the Company) is incorporated in Zambia under the Companies Act, 2017 as a
public limited company, and is domiciled in Zambia. The company is listed on the Lusaka Stock
Exchange and was incorporated in 1968. The address of its registered office is:
Plot 1609/10
Sheki Sheki Road
P O Box 35135
Lusaka
The Company's principal activities are disclosed on page 22 of the Directors’ Report.
The financial statements for the year ended 31 March 2023 were authorised for issue in accordance with
a resolution of the Directors on 21 July 2023.
2. ADOPTION OF NEW AND REVISED STANDARDS
2.1 New and amendments to IFRSs that are mandatorily effective for the current year
The Company applied new and several amendments to IFRSs issued by the International Accounting
Standards Board (IASB) that are mandatorily effective for an accounting period that begins on or after 1
January 2022.
Amendments to IAS 37, Provisions, Contingent Liabilities and Contingent Assets
The Company adopted the amendments to IAS 37.
The intention is to clarify that when assessing if a contract is onerous, the cost of fulfilling the contract
includes all costs that relate directly to the contract – i.e. a full-cost approach. Such costs include both
the incremental costs of the contract (i.e. costs a Company would avoid if it did not have the contract)
and an allocation of other direct costs incurred on activities required to fulfill the contract – e.g. contract
management and supervision, or depreciation of equipment used in fulfilling the contract.
The application of these amendments has had no impact on the Company’s financial statements as there
were no such transactions.
Further amendments to IFRS 3, Business Combinations
The Company adopted the amendments of IFRS 3.
The intention is to update references in IFRS 3 to the revised 2018 Conceptual Framework. To ensure
that this update in referencing does not change which assets and liabilities qualify for recognition in a
business combination, or create new Day 2 gains or losses, the amendments introduce new exceptions to
the recognition and measurement principles in IFRS 3.
An acquirer should apply the definition of a liability in IAS 37 – rather than the definition in the
Conceptual Framework to determine whether a present obligation exists at the acquisition date as a result
of past events. For a levy in the scope of IFRIC 21, the acquirer should apply the criteria in IFRIC 21 to
determine whether the obligating event that gives rise to a liability to pay the levy has occurred by the
acquisition date. In addition, the amendments clarify that the acquirer should not recognize a contingent
asset at the acquisition date.
4
Notes
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
2. ADOPTION OF NEW AND REVISED STANDARDS (CONTINUED)
(continued)
The application of these amendments has had no impact on the Company’s financial statements
as there were no such transactions.
Amendments to IAS 16, Property, Plant and Equipment (PPE) – Proceeds before Intended
Use
The Company adopted the amendments of IAS 16.
The intention is to introduce new guidance. Proceeds from selling items (e.g. samples) before the
related PPE is available for its intended use can no longer be deducted from the cost of PPE. Instead,
such proceeds should be recognized in profit or loss, together with the costs of producing those
items (to which IAS 2 applies). Accordingly, a Company will need to distinguish between:
• costs of producing and selling items before the PPE is available for its intended use; and
• costs of making the PPE available for its intended use.
Making this allocation of costs may require significant estimation and judgment. Companies in
the extractive industry in particular may need to monitor costs at a more granular level. The
amendments apply retrospectively but only for new PPE that reach their intended use on or after
the beginning of the earliest period presented in the financial statements in which the entity first
applies the amendments. They can be early adopted.
The application of these amendments has had no impact on the Company’s financial statements
as there were no such transactions.
Annual Improvements to IFRS Standards 2018 – 2020 Cycle
The Company applied the following annual improvements.
Amendments to IFRS 1, First-time Adoption of IFRS, simplify the application of IFRS 1 by a

subsidiary that becomes a first-time adopter of IFRS Standards later than its parent. If such a
subsidiary applies IFRS 1.D16(a), then it may elect to measure cumulative translation differences
at amounts included in the financial statements of the parent, based on the parent’s date of
transition to IFRS Standards.
Amendments to IFRS 9, Financial Instruments, clarify which fees to include in the ’10 percent’ test
for derecognition of financial liabilities. A borrower includes only fees paid or received between
itself and the lender, including fees paid or received by either the borrower or lender on the other’s
behalf.
Amendments to Illustrative Examples accompanying IFRS 16, remove the illustration of payments
from the lessor for lessee-owned leasehold improvements. As previously drafted, this example was
not clear about whether the payments meet the definition of a lease incentive.
National Breweries Plc | Annual Report 2023 36 8

Notes
(continued)
Amendments to IAS 41 Agriculture, remove the requirement to exclude cash flows for taxation
when measuring fair value thereby aligning the fair value measurement requirements in IAS 41
with those in IFRS 13.
The application of these amendments has had no impact on the Company’s financial statements as
there were no such transactions.
2.2 New and revised Standards in issue but not yet effective
The Company has not applied the following new and revised IFRSs that have been issued but are
not yet effective:
Amendments to IAS 1 Presentation of Financial Statements
Amendments to Practice Statement 2 Making Materiality Judgements
Amendments to IAS 8 Accounting Policies, Changes in Accounting
Estimates and Errors
Amendments to IAS 12 Income Taxes
Amendments to IFRS 16 Leases
The directors of the Company do not anticipate that the application of the amendments in the
future will have a significant impact on the financial statements.
Amendments to IAS 1, Presentation of Financial Statements’ on Classification of Liabilities

as Current or Non-Current.
Effective for annual periods beginning on or after 1 January 2024
The intention is to clarify that the classification of liabilities as current or non-current is based
solely on a Company’s right to defer settlement at the reporting date. The right needs to be
unconditional and must have substance. The amendments also clarify that the transfer of a
Company’s own equity instruments is regarded as the settlement of a liability, unless it results from
the exercise of a conversion option meeting the definition of an equity instrument. The amendment
requires the disclosure of information about the covenants and the related liabilities when a
liability arising from a loan agreement is classified as non-current and the entity’s right to defer
settlement is contingent on compliance with future covenants within twelve months.
Amendments to IAS 1 and IFRS Practice Statement 2, Disclosure of Accounting Policies
Effective for annual periods beginning on or after 1 January 2023.
The aim is to provide accounting policy disclosures that are more useful by replacing the
requirement to disclose ‘significant’ accounting policies with a requirement to disclose ‘material’
accounting policies, and adding guidance on how to apply the concept of materiality in making
decisions about accounting policy disclosures.

Notes
2.2 New and revised Standards in issue but not yet effective (continued)
Amendments to IAS 12, ‘Income Taxes’: Deferred Tax related to Assets and Liabilities arising
from a single transaction
Effective for annual periods beginning on or after 1 January 2023. Earlier application is permitted.
The amendments require companies to recognise deferred tax on transactions that, on initial
recognition give rise to equal amounts of taxable and deductible temporary differences.
IAS 1, ‘Presentation of Financial Statements’, Practice statement 2 and IAS 8 ‘Accounting

Policies, Changes in Accounting Estimates and Errors’
The amendments aim to improve accounting policy disclosures and to help users of the financial
statements to distinguish changes in accounting policies from changes in accounting estimates.
Amendments to IAS 8, Definition of Accounting Estimates
To clarify the interaction between an accounting policy and an accounting estimate, the standard
has been amended to state that: “An accounting policy may require items in financial statements
to be measured in a way that involves measurement uncertainty - that is, the accounting policy
may require such items to be measured at monetary amounts that cannot be observed directly and
must instead be estimated. In such cases, an entity develops an accounting estimate to achieve the
objective set out by the accounting policy”.
Amendments to IFRS 16, ‘Leases’: Lease Liability in a Sale and Leaseback
Effective for annual periods beginning on or after 1 January 2024.
The amendment specifies the requirements that a seller-lessee uses in measuring the lease liability
arising in a sale and leaseback transaction, to ensure the seller-lessee does not recognise any
amount of the gain or loss that relates to the right of use it retains.
The amendments clarify that the classification of liabilities as current or non-current is based on
rights that are in existence at the end of the reporting period, specify that classification is
unaffected by expectations about whether a Company will exercise its right to defer settlement of
a liability, explain that rights are in existence if covenants are complied with at the end of the
reporting period, and introduce a definition of ‘settlement’ to make clear that settlement refers to
the transfer to the counterparty of cash, equity instruments, other assets or services.
The amendments are applied retrospectively for annual periods beginning on or after 1 January
2023, with early application permitted.

Notes
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation of these financial statements are set
out below. These policies have been consistently applied to all years presented, unless otherwise
stated.
(a) Statement of compliance
The financial statements have been prepared in accordance with International Financial
Reporting Standards (IFRS).
(b) Basis of preparation
The financial statements have been prepared on the historical cost basis as explained in
the accounting policies below.
Historical cost is generally based on the fair value of the consideration given in exchange
for goods and services.
The Company does not hold any financial instruments held at fair value.
(c) Statement of cash flows
Cash flows are reported using the indirect method as per IAS 7 “Statement of cash flows”,
whereby profit for the period is adjusted for the effect of transactions of a non-cash nature,
any deferral or accrual of past or future cash operating receipts or payments and item of
income or expenses associated with investing or financing cash flows. The cash flows from
operating, investing and financing activities are segregated.
(d) Segment reporting
A business segment is a group of assets and operations engaged in providing products or

services that are subject to risks and returns that are different from those of other
business segments. A geographical segment is engaged in providing products or services
within a particular economic environment that are subject to risks and returns that are
different from those of segments operating in other economic environments.
(e) Revenue
The Company’s revenue arises from the sales of portfolio of Traditional African Beer
(TAB) products to customers, distributors and wholesalers at a fixed price.
Revenue comprises the fair value of the consideration received or receivable for the sale
of goods in the ordinary course of the Company's activities. Revenue is shown net of Value
Added Tax (VAT), Excise Duty and discounts.
Revenue is recognised upon transfer of control of promised products or services to the

customer at the consideration which the Company has received or expects to receive in
exchange of those products or services, net of any taxes/duties and discounts.

Notes
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(e) Revenue (continued)
Sale of goods are recognised in the period in which the Company has delivered products
to the customer, the customer has full discretion over the channel and price to sell the
products, and there is no unfulfilled obligation that could affect the customers' acceptance
of the products. Delivery does not occur until the products have been shipped to the
specified location, the risks of obsolescence and loss have been transferred to the
customer, and either the customer has accepted the products in accordance with the sales
contract, the acceptance provisions have lapsed or the Company has objective evidence
that all criteria for acceptance have been satisfied.
(f) Foreign currencies
The financial statements are presented in Zambian Kwacha, being the currency of the
primary economic environment in which the Company operates (the functional currency).
Transactions in foreign currencies are converted into Zambia Kwacha using the exchange
rates prevailing at the dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies at the reporting date
are retranslated at the foreign exchange rate ruling at that date. Exchange gains and losses
resulting from the settlement of foreign currency transactions and from the translation at
the closing date exchange rates of monetary assets and liabilities denominated in foreign
currencies are recognised in profit or loss. Non-monetary assets and liabilities
denominated in foreign currencies, which are stated at historical cost, are translated at
the foreign exchange rate ruling at the date of the transaction.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents
are presented in the statement of profit or loss and other comprehensive income as net
exchange gains/(losses).
(g) Property, plant and equipment
All categories of property, plant and equipment (PPE) are initially recorded at cost. All
property, plant and equipment is subsequently measured at historical cost less
accumulated depreciation and impairment loss. Historical cost includes expenditure that
is directly attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate
asset, as appropriate, only when it is probable that future economic benefits associated
with the item will flow to the Company and the cost of the item can be measured reliably.
Such cost includes the cost of replacing part of the plant and equipment and borrowing
costs for long term construction projects if the recognition criteria are met. All other
repairs and maintenance are charged to profit or loss during the financial period in which
they are incurred.
Impairment losses on property, plant and equipment are recognised in profit or loss
during the period. Reversals of impairment losses are recognised in profit or loss during
the period.

Notes
(g) Property, plant and equipment (continued)
Assets are depreciated to the residual values on a straight-line basis over the estimated
useful lives. The assets’ residual values and useful lives are reviewed at each financial year
end or whenever there are indicators for impairment, and adjusted prospectively. Land is
not depreciated. Depreciation is calculated on a straight-line basis over the estimated
useful lives of the assets, as follows:
Categories Years
Buildings 40 - 60 years
Equipment 5 - 25 years
Fixtures, fittings and office equipment 5 - 15 years
Containers 1 - 4 years
The carrying amount of property, plant and equipment is derecognised upon disposal or
when no future economic benefits are expected from either its use or ultimate disposal.
Even if the asset has a nil carrying amount , its cost and accumulated depreciation are still
derecognised.
Gains and losses arising from retirement or disposal of property, plant and equipment are
determined as the difference between the net disposal proceeds and the carrying amount
of the asset and are recognised in profit or loss on the date of retirement and disposal.
(h) Leases
Short-term leases and leases of low-value assets

The Company has elected not to recognise right-of-use assets and lease liabilities for
short-term leases that have a lease term of 12 months or less and leases of low-value
assets. The Company recognises the lease payments associated with these leases as an
expense on a straight-line basis over the lease term.
(i) Intangible assets

The Company’s intangible asset comprise of computer software stated at historical cost
less accumulated depreciation. Historical cost includes expenditure that is directly
attributable to the acquisition of the items. Directly attributable costs that are capitalised
as part of computer software include an approximate portion of overheads.
The computer software is amortised over the useful life of 4 years. Costs associated with
maintaining computer software programmes are recognised as an expense as incurred.

Notes
NOTES TOended
For the year THE31 FINANCIAL
March 2023 STATEMENTS (CONTINUED)

(j) Impairment of non-financial assets
PPE and intangible assets with definite lives are reviewed for impairment, whenever
events or changes in circumstances indicate that their carrying values may not be
recoverable. For the purpose of impairment testing, the recoverable amount (that is,
higher of the fair value less costs to sell and the value-in-use) is determined on an
individual asset basis, unless the asset does not generate cash flows that are largely
independent of those from other assets, in which case the recoverable amount is
determined at the cash-generating-unit (‘CGU’) level to which the said asset belongs. If
such individual assets or CGU are considered to be impaired, the impairment to be
recognised in the statement of profit and loss is measured by the amount by which the
carrying value of the asset/CGU exceeds their estimated recoverable amount and allocated
on pro rata basis. Impairment losses, if any, are recognised in statement of profit and loss.
Reversal of impairment losses

Impairment losses are reversed and the carrying value is increased to its revised
recoverable amount provided that this amount does not exceed the carrying value that
would have been determined had no impairment loss been recognised for the said asset
in previous years.
(k) Inventories
Inventories are stated at the lower of cost and net realisable value. The cost of raw
materials and consumables is determined using the weighted average cost method less
provision for impairment. The cost of finished goods and work in progress comprises raw
materials, direct labour, other direct costs and related production overheads (based on
normal operating capacity).
Net realisable value is the estimated selling price in the ordinary course of business, less
the costs of completion and applicable variable selling expenses.
(l) Financial instruments

Financial assets and financial liabilities are recognised in the Company’s statement of
financial position when the Company becomes a party to the contractual provisions of the
instrument.
Financial assets and financial liabilities are initially measured at fair value. Transaction
costs that are directly attributable to the acquisition or issue of financial assets and
financial liabilities (other than financial assets and financial liabilities at fair value through
profit or loss) are added to or deducted from the fair value of the financial assets or
financial liabilities, as appropriate, on initial recognition. Transaction costs directly
attributable to the acquisition of financial assets or financial liabilities at fair value through
profit or loss are recognised immediately in profit or loss.

Notes
(l) Financial instruments (continued)
Financial assets
All regular way purchases or sales of financial assets are recognised and derecognised on
a trade date basis. Regular way purchases or sales are purchases or sales of financial assets
that require delivery of assets within the time frame established by regulation or
convention in the marketplace.
All recognised financial assets are measured subsequently in their entirety at either
amortised cost or fair value, depending on the classification of the financial assets.
Classification of financial assets

Debt instruments that meet the following conditions are measured subsequently at
amortised cost:
• the financial asset is held within a business model whose objective is to hold financial
assets in order to collect contractual cash flows; and
• the contractual terms of the financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest on the principal amount
outstanding.
Trade receivables
Trade receivables are amounts due from customers from merchandise sold in the
ordinary course of business. If collection is expected in one year or less (or in the normal
operating cycle of the business if longer), they are classified as current assets. If not, they
are presented as non-current assets.
Trade receivables are recognised initially at fair value and subsequently measured at
amortised cost using the effective interest method less expected credit losses.
Amortised cost and effective interest method

The effective interest method is a method of calculating the amortised cost of a debt
instrument and of allocating interest income over the relevant period.
The amortised cost of a financial asset is the amount at which the financial asset is
measured at initial recognition minus the principal repayments, plus the cumulative
amortisation using the effective interest method of any difference between that initial
amount and the maturity amount, adjusted for any loss allowance. The gross carrying
amount of a financial asset is the amortised cost of a financial asset before adjusting for
any loss allowance.
Interest income is recognised using the effective interest method for debt instruments
measured subsequently at amortised cost. For financial assets that have subsequently
become credit-impaired, interest income is recognised by applying the effective interest
rate to the amortised cost of the financial asset. If, in subsequent reporting periods, the
credit risk on the credit-impaired financial instrument improves so that the financial asset
is no longer credit-impaired, interest income is recognised by applying the effective
interest rate to the gross carrying amount of the financial asset.

Notes
Foreign exchange gains and losses

The carrying amount of financial assets that are denominated in a foreign currency is
determined in that foreign currency and translated at the spot rate at the end of each
reporting period. Specifically;
• for financial assets measured at amortised cost that are not part of a designated
hedging relationship, exchange differences are recognised in profit or loss.
Impairment of financial assets

The Company recognises a loss allowance for expected credit losses on financial assets
that are measured at amortised cost. The amount of expected credit losses is updated at
each reporting date to reflect changes in credit risk since initial recognition of the
respective financial instrument.
The Company always recognises lifetime ECL for trade and other receivables. The
expected credit losses on these financial assets are estimated using a provision matrix
based on the Company’s historical credit loss experience, adjusted for factors that are
specific to the debtors, inflation levels, the impact of the public health pandemics and an
assessment of both the current as well as the forecast direction of conditions at the
reporting date, including time value of money where appropriate.
For all other financial instruments, the Company recognises lifetime ECL when there has
been a significant increase in credit risk since initial recognition. However, if the credit
risk on the financial instrument has not increased significantly since initial recognition,
the Company measures the loss allowance for that financial instrument at an amount
equal to 12-month ECL.
Lifetime ECL represents the expected credit losses that will result from all possible default
events over the expected life of a financial instrument. In contrast, 12-month ECL
represents the portion of lifetime ECL that is expected to result from default events on a
financial instrument that are possible within 12 months after the reporting date.
(i) Significant increase in credit risk
In assessing whether the credit risk on a financial instrument has increased

significantly since initial recognition, the Company compares the risk of a default
occurring on the financial instrument at the reporting date with the risk of a
default occurring on the financial instrument at the date of initial recognition. In
making this assessment, the Company considers both quantitative and qualitative
information that is reasonable and supportable, including historical experience
and forward-looking information that is available without undue cost or effort.
Forward-looking information considered includes the future prospects of the
industries in which the Company’s debtors operate, as well as consideration of
various external sources of actual and forecast economic information that relate
to the Company’s core operations.

Notes
NOTES TOended
For the year THE31 FINANCIAL
March 2023 STATEMENTS (CONTINUED)
(i) Significant increase in credit risk (continued)
The Company presumes that the credit risk on a financial asset has increased
significantly since initial recognition when contractual payments are more than
90 days past due, unless the Company has reasonable and supportable
information that demonstrates otherwise.
Despite the foregoing, the Company assumes that the credit risk on a financial
instrument has not increased significantly since initial recognition if the financial
instrument is determined to have low credit risk at the reporting date. A financial
instrument is determined to have low credit risk if:
(1) The financial instrument has a low risk of default,
(2) The debtor has a strong capacity to meet its contractual cash flow
obligations in the near term, and
(3) Adverse changes in economic and business conditions in the longer term
may, but will not necessarily, reduce the ability of the borrower to fulfil
its contractual cash flow obligations.
(ii) Definition of default
The Company considers the following as constituting an event of default for

internal credit risk management purposes as historical experience indicates that
financial assets that meet either of the following criteria are generally not
recoverable:
• when there is a breach of financial covenants by the debtor; or
• information developed internally or obtained from external sources
indicates that the debtor is unlikely to pay its creditors, including the
Company, in full (without taking into account any collateral held by the
Company
Irrespective of the above analysis, the Company considers that default has
occurred when a financial asset is more than 90 days past due unless the
Company has reasonable and supportable information to demonstrate that a
more lagging default criterion is more appropriate.
(iii) Credit-impaired financial assets

A financial asset is credit-impaired when one or more events that have a
detrimental impact on the estimated future cash flows of that financial asset have
occurred. Evidence that a financial asset is credit-impaired includes observable
data about the following events:
(a) significant financial difficulty of the issuer or the borrower;
(b) a breach of contract, such as a default or past due event;
(c) the lender(s) of the borrower, for economic or contractual reasons
relating to the borrower’s financial difficulty, having granted to the
borrower a concession(s) that the lender(s) would not otherwise
consider;
(d) it is becoming probable that the borrower will enter bankruptcy or other
financial reorganisation; or
(e) the disappearance of an active market for that financial asset because of
financial difficulties.

Notes
(iv) Write-off policy

The Company writes off a financial asset when there is information indicating that
the debtor is in severe financial difficulty and there is no realistic prospect of
recovery, e.g. when the debtor has been placed under liquidation or has entered
into bankruptcy proceedings, or in the case of trade receivables, when the trade
receivables has crossed the law of limitation period past due, whichever occurs
sooner. Financial assets written off may still be subject to enforcement activities
under the Company’s recovery procedures, taking into account legal advice
where appropriate. Any recoveries made are recognised in profit or loss.
(v) Measurement and recognition of expected credit losses

The measurement of expected credit losses is a function of the probability of
default, loss given default (i.e. the magnitude of the loss if there is a default) and
the exposure at default. The assessment of the probability of default and loss
given default is based on historical data adjusted by forward-looking information
as described above.
As for the exposure at default, for financial assets, this is represented by the
assets’ gross carrying amount at the reporting date; for financial guarantee
contracts, the exposure includes the amount drawn down as at the reporting date,
together with any additional amounts expected to be drawn down in the future
by default date determined based on historical trend, the Company’s
understanding of the specific future financing needs of the debtors, and other
relevant forward-looking information.
For financial assets, the expected credit loss is estimated as the difference
between all contractual cash flows that are due to the Company in accordance
with the contract and all the cash flows that the Company expects to receive,
discounted at the original effective interest rate.
The Company recognises an impairment gain or loss in profit or loss for all
financial instruments with a corresponding adjustment to their carrying amount
through a loss allowance account.
The Company derecognises a financial asset only when the contractual rights to
the cash flows from the asset expire, or when it transfers the financial asset and
substantially all the risks and rewards of ownership of the asset to another entity.
If the Company neither transfers nor retains substantially all the risks and
rewards of ownership and continues to control the transferred asset, the
Company recognises its retained interest in the asset and an associated liability
for amounts it may have to pay. If the Company retains substantially all the risks
and rewards of ownership of a transferred financial asset, the Company continues
to recognise the financial asset and also recognises a collateralised borrowing for
the proceeds received.
On derecognition of a financial asset measured at amortised cost, the difference

between the asset’s carrying amount and the sum of the consideration received
and receivable is recognised in profit or loss.

Notes
(v) Measurement and recognition of expected credit losses (continued)
Financial liabilities and equity

Classification as debt or equity
Debt and equity instruments are classified as either financial liabilities or as
equity in accordance with the substance of the contractual arrangements and the
definitions of a financial liability and an equity instrument.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the
assets of an entity after deducting all of its liabilities. Equity instruments issued
by the Company are recognised at the proceeds received, net of direct issue costs.
Repurchase of the Company’s own equity instruments is recognised and deducted

directly in equity. No gain or loss is recognised in profit or loss on the purchase,
sale, issue or cancellation of the Company’s own equity instruments.
Financial liabilities
All financial liabilities are measured subsequently at amortised cost using the
effective interest method.
The effective interest method is a method of calculating the amortised cost of a

financial liability and of allocating interest expense over the relevant period.
Foreign exchange gains and losses

For financial liabilities that are denominated in a foreign currency and are
measured at amortised cost at the end of each reporting period, the foreign
exchange gains and losses are determined based on the amortised cost of the
instruments. These foreign exchange gains and losses are recognised in the ‘other
gains and losses’ line item in profit or loss.
The fair value of financial liabilities denominated in a foreign currency is

determined in that foreign currency and translated at the spot rate at the end of
the reporting period.
Derecognition of financial liabilities

The Company derecognises financial liabilities when, and only when, the
Company’s obligations are discharged, cancelled or have expired. The difference
between the carrying amount of the financial liability derecognised and the
consideration paid and payable is recognised in profit or loss.

Notes
(m) Cash and cash equivalents

Cash and cash equivalents, in the statement of financial position, includes cash in hand,
deposits held on call with banks, other short term highly liquid investments with original
maturities of three months or less, and bank overdrafts measured at amortised costs.
Bank overdrafts that are repayable on demand and form an integral part of the Company’s
cash management are included as a component of cash and cash equivalents for the
purpose of the statement of cash flows.
(n) Borrowings and borrowing costs

Borrowings are recognised initially at fair value, net of transaction costs incurred.
Borrowings are subsequently measured at amortised cost using the effective interest
method.
When calculating the effective interest rate, the Company estimates the cash flows
considering all contractual terms of the financial instrument but does not consider future
credit losses.
Borrowing costs directly attributable to the acquisition, construction or production of an

asset that necessarily takes a substantial period of time to get ready for its intended use
or sale are capitalised as part of the cost of the asset. All other borrowing costs are
expensed in the period in which they occur. Borrowing costs consist of interest and other
costs that an Company incurs in connection with the borrowing of funds.
(o) Employee benefits
(i) Retirement benefit obligations
The Company operates a defined contribution scheme for all its employees. The
Company and all its employees also contribute to the National Pension Scheme
Authority Fund (NAPSA), which is a defined contribution scheme.
A defined contribution plan is a retirement benefit plan under which the

Company pays fixed contributions into a separate entity. The Company has no
legal or constructive obligations to pay further contributions if the fund does not
hold sufficient assets to pay all employees the benefits relating to employee
service in the current and prior periods.
The assets of all schemes are in separate trustee administered funds, which are
funded by contributions from both the Company and employees.
The contributions to the defined contribution schemes are recognised in profit or

loss in the year in which they fall.
(ii) Other entitlements
The estimated liability for employees’ accrued annual leave entitlement at the
reporting date is recognised in the profit and loss.

Notes
(p) Taxes
Income tax expense comprises current and deferred tax.
Current and deferred tax are recognised in profit or loss except to the extent that it relates
to items recognised directly in equity or other comprehensive income, in which case it is
recognised directly in equity or other comprehensive income.
Current tax
Current tax is the expected tax payable or receivable on the taxable income or loss for the
year, using tax rates enacted or substantively enacted at the reporting date, and any
adjustment to tax payable in respect of previous years.
Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying

amounts of assets and liabilities for financial reporting purposes and the amounts used
for taxation purposes. Deferred tax liabilities are recognised for all taxable temporary
differences, except:
• when the deferred tax liability arises from the initial recognition of an asset or
liability, at the time of the transaction, affects neither the accounting profit nor
taxable profit or loss;
• in respect of taxable temporary differences, when the timing of the reversal of the
temporary differences can be controlled and it is probable that the temporary
differences will not reverse in the foreseeable future.
Deferred tax is measured at the tax rates that are expected to be applied to the temporary
differences when they reverse, based on the laws that have been enacted or substantively
enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a
legally enforceable right to offset current tax liabilities and assets and they relate to
income taxes levied by the same tax authority on the same taxable entity.
A deferred tax asset is recognised for unused tax losses, tax credits and deductible
temporary differences to the extent that it is probable that future taxable profits will be
available against which they can be utilised, except:
• when the deferred tax asset relating to the deductible temporary difference arises
from the initial recognition of an asset or liability in a transaction that is not a
business combination and, at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss.
Deferred tax assets are reviewed at each reporting date and are reduced to the extent that
it is no longer probable that the related tax benefit will be realised.
(q) Dividends
The Company recognises a liability to pay a dividend when the distribution is authorised,
and the distribution is no longer at the discretion of the Company. Dividends payable to
the Company’s shareholders are charged to equity in the period in which they are declared.

Notes
(r) Provisions
Provisions are recognised when the Company has a present obligation (legal or
constructive) as a result of a past event, it is probable that the Company will be required
to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required
to settle the present obligation at the end of the reporting period, taking into account the
risks and uncertainties surrounding the obligation. When a provision is measured using
the cash flows estimated to settle the present obligation, its carrying amount is the present
value of those cash flows (when the effect of the time value of money is material).
When some or all of the economic benefits required to settle a provision are expected to
be recovered from a third party, a receivable is recognised as an asset if it is virtually
certain that reimbursement will be received and the amount of the receivable can be
measured reliably.
Onerous contracts
If the Company has a contract that is onerous, the present obligation under the contract is
recognised and measured as a provision. However, before a separate provision for an
onerous contract is established, the Company recognises any impairment loss that has
occurred on assets dedicated to that contract.
An onerous contract is a contract under which the unavoidable costs (i.e., the costs that
the Company cannot avoid because it has the contract) of meeting the obligations under
the contract exceed the economic benefits expected to be received under it. The
unavoidable costs under a contract reflect the least net cost of exiting from the contract,
which is the lower of the cost of fulfilling it and any compensation or penalties arising from
failure to fulfil it. The cost of fulfilling a contract comprises the costs that relate directly to
the contract (i.e., both incremental costs and an allocation of costs directly related to
contract activities).
(s) Contingencies
A disclosure for a contingent liability is made when there is a possible obligation or a
present obligation that may, but probably will not, require an outflow of resources. When
there is a possible obligation or a present obligation in respect of which the likelihood of
outflow of resources is remote, no provision or disclosure is made. Contingent assets are
not recognised and disclosed only where an inflow of economic benefits is probable.

Notes
(t) Earning per share (EPS)
The Company presents the Basic and Diluted EPS data. Basic EPS is computed by dividing
the profit for the period attributable to the shareholders of the Company by the weighted
average number of shares outstanding during the period. Diluted EPS is computed by
adjusting, the profit for the year attributable to the shareholders and the weighted average
number of shares considered for deriving Basic EPS, for the effects of all the shares that
could have been issued upon conversion of all dilutive potential shares. The dilutive
potential shares are adjusted for the proceeds receivable had the shares been issued at
fair value. Further, the dilutive potential shares are deemed converted as at beginning of
the period, unless issued at a later date during the period.
(u) Comparatives
Where necessary, comparative figures have been adjusted to conform with changes in
presentation in the current year.
4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
Estimates and judgments are continually evaluated and are based on historical experience and
other factors, including experience of future events that are believed to be reasonable under the
circumstances.
Critical accounting estimates and assumptions
The Company makes estimates and assumptions concerning the future. The resulting accounting
estimates will, by definition, seldom equal the related actual results. The estimates and
assumptions that have a significant risk of causing a material adjustment to the carrying amounts
of assets and liabilities within the next financial year are addressed below.
Expected credit loss on trade and other receivables
Trade and other receivables are non-interest-bearing and are generally on 7 to 60 days payment
periods. The Company measures the loss on trade and other receivables at an amount equal to
lifetime expected credit loss which is estimated using a provision matrix (refer to note 19) by
reference to past default experience of the debtor and an analysis of the debtor’s current financial
position, adjusted for factors that are specific to the debtors, general economic conditions of the
industry in which the debtors operate and an assessment of both the current as well as the forecast
direction of conditions at the reporting date. Trade and other receivables above 90 days are
provided for based on estimated irrecoverable amounts from the sale of product, determined by
reference to past default experience.
When measuring ECL the Company uses reasonable and supportable forward-looking information,
which is based on assumptions for the future movement of different economic drivers such as
inflation and growth in the Gross Domestic Product (GDP) among other considerations.
The Company recognises an impairment gain or loss in profit or loss for all financial instruments
with a corresponding adjustment to their carrying amount through a loss allowance account in
profit or loss.

Notes
4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED)
Current income tax
The Company is subject to income taxes in the Republic of Zambia. There are many transactions
and calculations for which the ultimate tax determination is uncertain during the ordinary course
of business. The Company recognises liabilities for anticipated tax based on estimates of whether
additional taxes will be due. Where the final tax outcome of these matters is different from the
amounts that were initially recorded, such differences will impact on the income tax in the period
in which such determination is made. Current income tax is measured at the amount expected to
be paid to the tax authorities in accordance with the Income Tax Act. The tax rates and tax laws
used to compute the amount are those that are enacted or substantively enacted, by the reporting
date.
Useful lives and residual values of property, plant and equipment
The Company assesses useful lives and residual values of property, plant and equipment each year,
taking into account past experience and technology changes. The useful lives are set out in note
3(g) and no changes to those useful lives have been considered necessary during the year. In the
case of plant, residual value at the end of useful life has been assessed as negligible due to the
specialist nature of the plant, technology changes and likely de-commissioning costs.
Impairment of non-financial assets
Impairment exists when the carrying value of an asset exceeds its recoverable amount, which is
the higher of its fair value less costs of disposal and its value in use. The value in use calculation is
based on an Incurred Loss Model. The cash flows are derived from the budget for the next 5 years
and do not include restructuring activities that the Company is not yet committed to or significant
future investments that will enhance the performance of the assets. The recoverable amount is
sensitive to the discount rate used for the incurred model as well as the expected future cash-
inflows and the growth rate used for extrapolation purposes. The key assumptions used to
determine the recoverable amount are disclosed and further explained in note 16.
Going Concern
Given the continued unfavourable performance of the Company, there is a material uncertainty
that casts doubt on the Company’s ability to operate as a Going Concern. In preparing financial
statements, management have performed an assessment on the Company’s ability to continue as
a Going Concern, by making a number of assumptions which include volume and revenue growth,
stability of the foreign exchange rate and continued support from the major shareholder, Delta
Corporation Limited. These assumptions include all available information about the future, which
is at least, but not limited to, twelve months from the end of the reporting period. Further details
on Going Concern is disclosed in note 5.

Notes
NOTES
For the yearTO THE
ended FINANCIAL
31 March 2023 STATEMENTS (CONTINUED)
5. GOING CONCERN
The Company incurred a loss for the year ended 31 March 2023 of K237.5 million (2022: K120.29
million) and as of that date, the Company's current liabilities exceeded its current assets by K651.6
million (2022: K471.3 million) and had an Accumulated Loss of K544.7m (2022: 307.1m), giving an
indication of material uncertainty of the going concern assumption.
The financial statements have been prepared on the basis of accounting policies applicable to a going
concern. This basis presumes that funds will be available to finance future operations and that the
realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in
the ordinary course of business.
The ability of the Company to continue as a going concern is predicated on an upswing in volumes in
response to various measures taken during the year. Additional measures planned during the next
financial year ending 31 March 2024 will help to consolidate these gains, further stabilise the Company
and move it to profitability.
Financial Support
The major shareholder, Delta Corporation Limited (Delta), has pledged its continued financial support
for the forthcoming financial year. It has also confirmed its continued undertaking and ability to provide
further financial support to the Company for all debts falling within 12 months from the date of the audit
report of the year ended 31 March 2023. Further, the Board of Directors of Delta Corporation Limited
also commits that Delta will provide financial support to National Breweries Plc to meet its obligations
as they fall due for a period of 18 months from the audit sign off date.
The Board of Directors of Delta Corporation Limited (“Delta”) are aware that as at 31 March 2023
National Breweries Plc current liabilities exceeded its current assets by K651.6 million and that National
Breweries Plc has been making operational losses from the time that Delta acquired the majority stake
in December 2017. Delta Corporation Limited has the financial capacity to meet the financial obligations
of National Breweries Plc of approximately K795.4 million, which is the projected cash shortfall over
the 18 months, most of which is owed to Delta.
Subordination Letter
Delta has agreed to assist the Company by subordinating its claims against the Company in favour, and
for the benefit, of other creditors of the Company. Delta agrees that it will not demand any amount due
to it until such time as the Company’s assets, fairly valued, exceed its liabilities. This agreement shall
remain in force and effect as long as the liabilities of the Company exceed its assets, fairly valued.
The agreement shall lapse upon the date that the assets of the Company, fairly valued, exceed its
liabilities, and shall not, except by further agreement in writing, be reinstated if thereafter the liabilities
of the Company once again exceed its assets.
5
Notes
6. FINANCIAL RISK MANAGEMENT
The Company’s activities expose it to a variety of financial risks: Market risk (including foreign
exchange risk, cash flow and interest rate risk), credit risk and liquidity risk. The Company’s overall
risk management programme focuses on the unpredictability of financial markets and seeks to
minimise potential adverse effects on its financial performance.
Financial risk management is carried out by the finance department under policies approved by
the Board of Directors.
Market risk
(i) Foreign exchange risk
The Company is exposed to foreign exchange risk arising from various currency
exposures, primarily with respect to the US Dollar (USD), South African Rand (ZAR) and
Euro (EUR). Foreign exchange risk arises from future commercial transactions, and
recognised assets and liabilities.
Currency exposure arising from liabilities denominated in foreign currencies is managed

primarily through the holding of bank balances in the relevant foreign currencies and
hedging through foreign currency forward contract. In the current year, there were no
active foreign currency forward contracts. Policy is consistent with previous period.
The sensitivity analysis has been prepared on the basis that the trade receivables,
payables and borrowings and the proportion of financial instruments in foreign currencies
are all constant.
The assumption in calculation of the sensitivity analysis is that: the sensitivity of the
relevant statement of profit or loss is the effect of the assumed changes in the respective
market risk, the sensitivity of equity is calculated by considering the effects of the assumed
changes of the underlying risks.
At 31 March 2023, if the Kwacha had weakened by 5% (2022: 5%) against the US dollar
with all other variables held constant, post tax profit for the period would have been K1.4
million (2022: K0.36 million) lower/higher, mainly as a result of US dollar denominated
cash balances and trade payables. There would be no impact on equity.
At 31 March 2023, if the Kwacha had weakened/strengthened by 5% (2022: 5%) against

the ZAR with all other variables held constant, post tax profit for the period would have
been K0.02 million (2022: K0.4 million) lower/higher, mainly as a result of ZAR
denominated cash balances and trade payables. There would be no impact on equity.
At 31 March 2023, if the Kwacha had weakened 5% (2022: 25%) against the EUR with all
other variables held constant, post tax profit for the period would have been K0.3 million
(2022: K0.8 million) lower/higher, mainly as a result of EUR denominated cash balances
and trade payables. There would be no impact on equity.

Notes
6. FINANCIAL RISK MANAGEMENT (CONTINUED)
(ii) Cash flow and interest rate risk

The Company’s interest bearing financial liabilities were the bank borrowings of K25.4
million at the year end (2022: K51.3 million). The interest rate consists of the Monetary
Policy Rate (MPR) plus a margin. The margin is fixed at an agreed period (subject to the
significant change in market condition) and on which it was therefore not exposed to cash
flow interest rate risk. The Company regularly monitors financing options available to
ensure optimum interest rates are obtained. At 31 March 2023, if effective interest rates
on borrowings had been 0.5% higher/lower with all other variables held constant, pre tax
loss would have been K0.16 million (2022: K0.16 million) lower/higher.
Credit risk
Credit risk is the risk that a customer or counterparty to a financial instrument will fail to perform
or fail to pay amounts due causing financial loss to the company and arises from cash equivalents
and deposits with financial institutions and principally from credit exposures to customers
relating to outstanding receivables. For banks and financial institutions, only reputable institutions
are used.
The amount that best represents the Company’s maximum exposure to credit risk at 31 March
2023 is made up as follows:
2023 2022
K ‘000 K ‘000
Trade and other receivables (note 19) 7,152 3,962

Cash and cash equivalents (note 20) 23,550 3,509
_________ _________
30,702 7,471
_________ _________
Trade Receivables
The customer credit risk is managed as per Company’s established policy, procedures and control
relating to customer credit risk management. The credit quality of a customer is assessed based on
trading history and individual credit limits are defined in accordance with this assessment.
Outstanding customer receivables are regularly monitored and any sales to major customers are
based on the standing and history of the customer. Only one of the major customers provided a
bank guarantee for K600,000 during the year. At 31 March 2022, the Company had 3 customers
(2022: 3) that owed it more than K0.5 million each and accounted for approximately 39% (2022:
23%) of all the receivables outstanding. There was 1 customer (2022: nil customers) with balances
greater than K1.0 million.
An impairment analysis is performed at each reporting date using a provision matrix to measure
expected credit losses. The provision rates are based on days past due for groupings of various
customer classes with similar loss patterns (i.e., customer type, rating, and guarantee). The
calculation reflects the probability-weighted outcome, the time value of money and reasonable and
supportable information that is available at the reporting date about past events, current
conditions and forecasts of future economic conditions.

Notes
Set out below is the information about the credit risk exposure on the Company’s trade
and other receivables using a provision matrix:
31 March 2023 Trade and other receivables

Days past due
Current 7–14 15–21 22–90 >90 Total
days days days days
K'000 K'000 K'000 K'000 K'000 K'000
Expected credit loss rate 25% 25% 25% 50% 100%
Estimated total gross
carrying amount at default 2,108 1,093 414 1,221 8,402 13,238
Expected credit loss 527 273 104 702 8,402 10,619
31 March 2022 Trade and other receivables

Days past due
Current 7–14 15–21 22–90 >90 Total
days days days days
K'000 K'000 K'000 K'000 K'000 K'000
Expected credit loss rate 24% 25% 20% 29% 100%
Estimated total gross
carrying amount at default 2,207 2,055 289 540 6,268 11,359
Expected credit loss 527 510 57 155 6,268 7,517
Liquidity risk
Liquidity risk is the risk that the Company will be unable to meet its financial obligations as they
become due. The objectives of the Company’s liquidity risk management processes are to maintain
adequate cash and credit facilities to meet all short-term obligations and ensure that the Company
can meet all known and forecast strategic commitments. The obligations within one year will be
financed from operating cash flows.
Prudent liquidity risk management includes maintaining sufficient cash balances, and the
availability of funding from an adequate amount of committed credit facilities. Due to the dynamic
nature of the underlying business, the finance department maintain flexibility in funding by
maintaining availability under committed credit lines.
The table below summarises the maturity profile of the Company's financial liabilities based on
contractual undiscounted payments.

Notes

Liquidity risk (continued)
Less than Between Over
1 year 1 and 2 years 2 years Total
K’000 K ‘000 K ‘000 K ‘000
2023
Trade and other payables 142,953 - 142,953
Amounts due to related parties 517,912 71,570 589,482
Current tax 2 - - 2
Borrowings 24,772 630 - 25,402
_________ _________ _________ _________
685,639 630 71,570 757,839
_________ _________ _________ _________
2022
Trade and other payables 80,027 - - 80,027
Amounts due to related parties 380,415 - - 380,415
Borrowings 33,651 17,066 630 51,347
_________ _________ _________ _________
494,093 17,066 630 511,789
_________ _________ _________ _________
7. CAPITAL MANAGEMENT
The Company’s objectives when managing capital are to safeguard the company’s ability to
continue as a going concern in order to provide returns for shareholders and to maintain an
optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital
structure, the company may limit the amount of dividends paid to shareholders, issue new shares,
or sell assets to reduce debt.
The Company monitors capital on the basis of the gearing ratio. This ratio is calculated as net debt
divided by total capital. Net debt is calculated as total borrowings less cash and cash equivalents.
Total capital is calculated as equity plus net debt.
The gearing ratios at 31 March 2023 and 31 March 2022 were as follows:
2023 2022
K ‘000 K ‘000
Total borrowings (Bank loans) 25,402 51,347
Less: cash and cash equivalents (23,555) (3,519)
_________ _________
Net debt 1,847 47,828
_________ _________
Total equity (544,057) (306,458)
_________ _________
Total capital (542,210) (258,630)
_________ _________
Gearing ratio -0.3% -18%
_________ _________
The target gearing ratio is 50% (2022 : 50%).

Notes
For the year
NOTES TOended
THE 31 March 2023STATEMENTS (CONTINUED)
FINANCIAL
2023 2022
K ‘000 K ‘000
8. REVENUE
The Company derives its revenue from contracts with

customers for the transfer of product at a point in time
upon delivery. Payment for the product is received from
the customers on a cash and credit terms.
Sorghum beer 254,298 231,654

_________ _________
The Company has a single reportable segment. The
operations of the Company are in Lusaka, Kitwe and Ndola.
9. NET EXCHANGE (LOSSES)/GAINS
Net exchange gains and losses arose on:

Payables and cash and cash equivalents - Realised (43,031) 39,418
Payables and cash and cash equivalents - Unrealised 5,186 6,059
_________ _________
(37,845) 45,477
_________ _________
10. INTEREST INCOME
Interest income 5 123

_________ _________
11. FINANCE COSTS
Interest expense on borrowings

-measured at amortised cost (43,285) (32,194)
_________ _________
12. LOSS BEFORE TAX
Loss before tax is stated after crediting:

and after charging:
Raw materials and utilities expenses 179,499 147,200
Employee benefits – Short term benefits 72,269 68,999
Employee benefits – Post employment benefits 4,808 2,500
Leave benefit 2,060 6,717
Auditors’ remuneration 1,500 1,161
Depreciation on property and equipment (Note 16) 14,835 14,215
Amortisation of containers (Note 16) 11,359 849
Amortisation of intangible assets (Note 17) 205 481
_________ _________
30

Notes
13. INCOME TAX

2023 2022
K ‘000 K ‘000
Current income tax 2 9

Deferred tax - -
_________ _________
2 9
_________ _________
The tax on the Company’s loss before income tax differs from the theoretical amount that would arise
using the statutory income tax rate as follows:
Loss before income tax (237,597) (120,282)

_________ _________
Tax calculated at the statutory income
tax rate of 30% (35%) (71,279) (42,099)
Tax on other income 2 9
Non-deductible expenses 71,279 7,103
Effect of deferred tax on losses not provided - 34,996
_________ _________
Income tax expense 2 9
_________ _________
No deferred tax asset has been recognised in the financial statements due to the continued tax loss
situation.
Current tax
Current income tax movement in the statement of financial
position:
At start of the year 108 4,088
Current income tax charge (2) (9)
Recoverable from ZRA - (3,984)
Write-off (108) -
Payments during the year - 13
_________ _________
At end of the year (2) 108
_________ _________
Income tax provisional returns have been filed with the Zambia Revenue Authority (ZRA) for the period
ended 31 March 2023.
Subject to agreement with the Zambia Revenue Authority, the Company has estimated tax losses of
approximately K337.4 million (2022: K185.2 million) available to carry forward for a period of not
more than 5 years from the charge year in which they were incurred, for set off against future taxable
profits from the same source.

Notes
NOTES
For the yearTO THE
ended FINANCIAL
31 March 2023 STATEMENTS (CONTINUED)
13. INCOME TAX (CONTINUED)
2023 2022
K ‘000 K ‘000
Deferred tax
Deferred tax relates to the following:
Property, plant and equipment & intangible assets 32,305 35,961
Allowance of expected credit losses (3,186) (2,255)
Allowance for obsolete inventories (598) (514)
Provisions (5,781) (4,083)
Disallowed interest (24,296) (16,432)
Unrealised exchange differences 1,556 1,818
Assessed losses - (14,495)
_________ _________
At end of the year - -
_________ _________
Reconciliation of deferred tax:

At start of the year - -
Tax expense for the period - -
_________ _________
At end of the year - -
_________ _________
No deferred tax asset has been recognised in the financial statements in respect of assessed tax losses
carried forward of K 337.4m (2022: K185.2m) because in the opinion of the Directors, the losses
may not be fully utilised before the lapse for use as deductions to future taxable income. The assessed
losses available in the future are summarised below:
Memorandum of assessed losses

These losses expire as follows:
2018 losses to be carried forward to 2023 4,283 4,283
2022 losses to be carried forward to 2027 152,224 -
_________ _________
337,409 185,185
__________ _________

Notes
14. LOSS PER SHARE
2023 2022
Loss attributable to
the equity holders of the Company (K ‘000) (237,599) (120,291)
_________ _________
Weighted average number of
ordinary shares (Nos '000) 63,000 63,000
_________ _________
Basic and diluted loss per share (Kwacha) (3.77) (1.91)
__________ __________
There were no potentially dilutive shares outstanding at

31 March 2023 and 31 March 2022. Diluted loss per
share is therefore the same as basic loss per share.
15. SHARE CAPITAL

Number Ordinary
of shares shares
(million) (K ‘000)
At 31 March 2023 63,000 630

_________ _________
At 31 March 2022 63,000 630
__________ __________
The number of total authorised ordinary shares is 75

million with a par value of K 0.01 per share. The number
of total issued ordinary shares is 63 million with a par
value of K 0.01 per share. All issued shares are fully paid.

16. PROPERTY, PLANT AND EQUIPMENT

Fixture, Capital
Notes
fittings, office work in
Buildings Equipment equipment progress Containers Total
K ‘000 K ‘000 K ‘000 K ‘000 K ‘000 K ‘000
COST
At 1 April 2021 88,008 268,011 4,200 1,466 5,227 366,912
Additions - 8,441 128 - 3,098 11,667
Transfers - 1,458 - (1,458) - -
At 31 March 2022 88,008 277,910 4,328 8 8,325 378,579

__________ __________ __________ __________ __________ __________
Additions - 1,635 38 1,640 20,416 23,729
At 31 March 2023 88,008 279,545 4,366 1,648 28,741 402,308

__________ __________ __________ __________ __________ __________
National Breweries Plc | Annual Report 2023

DEPRECIATION
___________ ___________ ___________ ___________ ___________ ___________
At 1 April 2021 (16,999) (161,308) (3,081) - - (181,388)

Charge for the year (2,358) (11,598) (259) - - (14,215)
Container amortisation - - - - (849) (849)
At 31 March 2022 (19,357) (172,906) (3,340) - (849) (196,452)

_________ _________ _________ _________ _________ _________
Charge for the year (2,354) (12,200) (281) - - (14,835)
62
Container amortisation - - - - (11,359) (11,359)
At 31 March 2023 (21,711) (185,106) (3,621) - (12,208) (222,646)

_________ _________ _________ _________ _________ _________
CARRYING AMOUNT
__________ __________ __________ __________ __________ __________
At 31 March 2023 66,297 94,439 745 1,648 16,533 179,662

__________ __________ __________ __________ __________ __________
At 31 March 2022 68,651 105,004 988 8 7,476 182,127
__________ __________ __________ __________ __________ __________
In accordance with the Companies Act, 2017 the register of land and buildings is available for inspection by members and their duly authorised agents at the registered office of the
Company.
34
Notes
16. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Impairment losses recognised during the year

During the year, as the result of the continued operating losses, the Company carried out a review
of the recoverable amount of the manufacturing plants and the related equipment.
These assets are used in the Company's manufacturing operations. After the review no impairment
loss was recognised during the year (2022: nil) in the profit or loss as the carrying amount did not
exceed the value in use. The Company also estimated the fair value less costs of disposal of the
manufacturing plant and the related equipment, which is based on the recent market prices of
assets with similar age and obsolescence. The fair value less costs of disposal is less than the value
in use and hence the recoverable amount of the relevant assets has been determined on the basis
of their value in use. The directors consider the fair value of the property, plant and equipment is
at least equal to their carrying values as reflected in the statement of financial position.
The discount rate used in measuring value in use was 24 per cent per annum (2022: 26.8 per cent).
Assets pledged as security

Buildings and equipment with a carrying amount of K101.9 million ( 2022: K101.9 million) have
been pledged to secure borrowings of the Company (see note 22). The Company is not allowed to
pledge these assets as security for other borrowings or to sell them to another entity.
17. INTANGIBLE ASSETS

2023 2022
K ‘000 K ‘000
Cost
Balance At 1 April 4,553 4,553
Additions - -
_________ _________
Balance At 31 March 4,553 4,553
__________ __________
Amortisation
Balance At 1 April (4,174) (3,693)
Charge for the year (205) (481)
_________ _________
Balance At 31 March (4,379) (4,174)
__________ __________
Carrying amount
At 31 March 174 379
_________ _________
The Company’s intangible asset comprises computer software stated at historical cost less
accumulated amortisation. The computer software is amortised over the useful life of 4 years.
Cost associated with maintaining computer software programmes are recognised as an
expense as incurred.

Notes
18. INVENTORIES
2023 2022
K ‘000 K ‘000
Raw materials 19,504 13,442

Consumables 6,008 5,510
Finished goods and Work-in-progress 2,620 1,496
_________ _________
28,132 20,448
_________ _________
The cost of inventories recognised as an expense and
included in Cost of Sales amounted to K 179.5 million
(2022: K147.2 million).
There was no inventory write down in the year ended 31

March 2023 (2022: Nil).
19. TRADE AND OTHER RECEIVABLES
Trade receivables 13,238 9,107

Other receivables 4,533 2,372
Prepayments, staff related receivables 12,810 6,031
__________ _________
Net financial assets 30,581 17,510
Allowance for expected credit losses (10,619) (7,517)
__________ _________
19,962 9,993
__________ _________
Trade receivables are non-interest bearing and are
generally on terms of 14 to 30 days.
Set out below is the movement in the allowance for

expected credit losses on trade and other receivables.
As at 1 April (7,517) (4,221)

Increase in the allowance for expected credit losses (3,102) (3,296)
__________ __________
As at 31 March (10,619) (7,517)
__________ __________
The significant changes in the balances of trade receivables
are a result of increased trade with customers in the new
product lines while the information about the credit
exposures are disclosed in note 6.
20. CASH AND CASH EQUIVALENTS
Cash at bank 23,550 3,509

Cash in hand 5 10
__________ _________
23,555 3,519
__________ _________

Notes
21. TRADE AND OTHER PAYABLES

2023 2022
K ‘000 K ‘000
Trade payables 78,096 34,931

Accrued expenses 63,768 44,007
Dividends payable 1,089 1,089
Other payables 37,703 14,972
__________ __________
180,656 94,999
__________ __________
Trade payables are non-interest bearing and are normally
settled on 60-day terms. Accrued expenses and other
payables are non-interest bearing and have an average
term of 90 days.
The carrying amount of the above payables and accrued

expenses approximate their fair values because of their
short-term nature.
22. BORROWINGS
Secured borrowing at amortised cost

Bank loans 25,402 51,347
__________ __________
Non-current 630 17,696
Current 24,772 33,651
__________ __________
25,402 51,347
__________ __________
Zambia National Standard
Commercial Chartered
Bank Bank
Plc Zambia Plc Total
K ‘000 K ‘000 K ‘000
At 1 April 2021 40,968 49,000 89,968
Repayments in the year (23,649) (14,972) (38,621)
________ _________ ________
At 31 March 2022 17,319 34,028 51,347
Repayments in the year (8,250) (17,695) (25,945)
_________ _________ _________
At 31 March 2023 9,069 16,333 25,402
__________ __________ __________
The borrowings are due to Zambia National Commercial Bank Plc and Standard Chartered Bank
Zambia Plc. The Zambia National Commercial Bank Plc loan tenor is 3 years and matures in April
2024 at an interest rate of 19.25% while the Standard Chartered Bank Zambia Plc loan is 3 years
and matures in February 2024 at an interest rate of 16.25%.
The borrowings are secured by assets as disclosed in note 16 under “Assets pledged as security”.
Breach of a loan agreement

The Company remedied all arrears and breaches of loan covenants with its lenders that were
reported in the previous year.

Notes
23. RELATED PARTY DISCLOSURES
The Company is listed on the Lusaka Stock Exchange (LuSE). 70% of the Company’s issued share
capital is owned by Chibuku Breweries Limited, which is owned 100% by Delta Corporation
Limited. Therefore, Delta Corporation Limited is the ultimate holding company of the Company.
Other shareholders of the Company include non-controlling interests held by various institutional
and individual investors.
The shareholding of the Company as at 31 March 2023 and 2022 is as stated below:
2023 and 2022
Name of shareholder No. of %
shares shareholding
____________ _________
Chibuku Breweries Limited 44,100,000 70.00%
Public (institutions and individual investors) 18,900,000 30.00%
____________ _________
63,000,000 100.00%
___________ _________
2023 2022
K ‘000 K ‘000
The following transactions were carried out with related

parties:
i) Management fees expenses
Name of Country of Relationship
related party incorporation to Company
Delta Corporation Limited Zimbabwe Parent 9,476 10,171
__________ __________
ii) Payable to related parties

Name of Country of Relationship
related party incorporation to Company
Zambian Breweries Plc Zambia Fellow investee 5,033 4,422
Delta Corporation Limited Zimbabwe Parent 584,449 372,264
Amounts due to related party 584,449 375,993
Amounts due from related party - (3,729)
589,482 376,686
__________ __________
Current assets - (3,729)

Non-current liabilities 71,570 -
Current liabilities 517 912 380,415
__________ __________
589,482 376,686
__________ __________
Amounts due to related parties carry an interest of 20% and 7.5%
per annum respectively, payable on demand and are at arms-
length.

Notes
Page 66 are in thousands of Kwacha unless otherwise stated)
(All amounts
23. RELATED PARTY DISCLOSURES (CONTINUED)
2023 2022
K ‘000 K ‘000
iii) Key management compensation

Salaries and other short-term employment benefits 6,295 14,627
__________ __________
iv) Directors' remuneration

Fees for services as a Director 1,137 2,573
__________ __________
24. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (FINANCIAL INSTRUMENTS)
The carrying value of financial instruments not carried at fair value, which include trade and other
receivables, bank and cash balances, amounts due from a related party, trade and other payables,
borrowings and amounts due to related parties approximates fair value because of the short period
to maturity of these instruments or as a result of market-related variable interest rates with similar
terms, currency, credit risk and remaining maturities.
The Company does not hold any financial instruments held at fair value.
Carrying value Fair value
K ‘000 K ‘000
31 March 2023
At amortised cost:
Trade and other receivables 19,962 19,962
Cash and bank balances 23,555 23,555
Trade and other payables (180,656) (180,656)
Borrowings (25,402) (25,402)
Amounts due to related parties (589,482) (589,482)
__________ __________
31 March 2022
At amortised cost:
Trade and other receivables 7,833 7,833
Cash and bank balances 3,519 3,519
Amounts due from a related parties 3,729 3,729
Trade and other payables (80,027) (80,027)
Borrowings (51,347) (51,347)
Amounts due to related parties (380,415) (380,415)
__________ __________

Notes
25. CONTINGENT LIABILITIES
Legal proceedings
The Company had some pending legal proceedings as at 31 March 2023. The Directors are of the
opinion that having obtained relevant legal advice that there will be no material losses arising from
pending proceedings against the Company.
Tax proceedings
In prior year, the ZRA communicated its preliminary findings on the Transfer Pricing (TP) audit of
the Company for the period 2022 to 2016. An amount of K83.4 million was advised as the
outstanding tax obligation due to the ZRA under TP.
During the year, the Company continued engagements with the ZRA and shared additional
information which resulted in the reduction of the preliminary obligation to K29.5 million. The
Company is continuing with engagements with the ZRA to further reduce the obligation.
26. CAPITAL COMMITMENTS

2023 2022
K'000 K'000
Authorised by the Directors but not contracted for 25,948 22,587

__________ __________
The capital expenditure is to be financed out of the Company's own cash resources and existing
borrowing facilities.
27. SEGMENT REPORTING
Management has determined the operating segments based on the reports reviewed by the
Management Committee that are used to make strategic decisions. The committee considers the
business as a single operating segment, being Zambia operations.
The reportable operating segment derives its revenue primarily from the sale of Traditional
African Beer in Zambia.
The Management Committee assesses the performance of the operating segment based on a
measure of Earnings before Interest Tax, Depreciation and Amortisation.
28. EVENTS AFTER REPORTING DATE
There were no material subsequent events for the year ended 31 March 2023. The Directors are
not aware of any other matter or circumstances since the financial year end and the date of this
report, not otherwise dealt with in the financial statements, which significantly affects the financial
position of the Company and the results of its operations.

Principal Shareholders And Distribution Of Shareholders
Principal Shareholders
The 10 largest shareholding in the company and the respective number of shares held at 31 March 2023 is as
follows;
Rank Name of Shareholder % Number of

Shares
1 CHIBUKU BREWERIES LIMITED 70.00 44,100,000
2 STANDARD CHARTERED ZAMBIA SECURITIES SERVICES NOMINEES LTD 8.64 5,444,605
3 PUBLIC SERVICE PENSIONS FUND BOARD 8.11 5,106,783
4 NATIONAL PENSION SCHEME AUTHORITY 2.22 1,400,000
5 SATURNIA REGNA PENSION TRUST FUND 1.98 1,249,218
6 WORKERS’ COMPENSATION FUND CONTROL BOARD 1.24 780,666
7 KCM PENSION TRUST SCHEME 0.93 583,418
8 LOCAL AUTHORITY SUPERANNUATION 0.60 378,620
9 M.P.T.L. L 0.40 250,000
10 MADISON PENSION TRUST FUND 0.35 219,378
Total Shares Selected 94.47 59,512,688
Not Selected 5.53 3,487,312
Issued Share Capital 100.00 63,000,000
Distribution of Shareholders
Rank Name of Shareholder % Number of

Shares
1 Less than 500 Shares 557 0.24 150,767
2 501 - 5,000 359 1.03 650,081
3 5,001 - 10,000 25 0.30 186,443
4 10,001 - 100,000 50 2.53 1,591,900
5 100,001 - 1,000,000 11 4.95 3,120,203
6 Over 1,000,000 5 90.95 57,300,606
1,007 100.00 63,000,000

Directorate and Corporate Information
CHAIRMAN LEGAL ADVISORS

Richard Mazombwe* Tembo Ngulube & Associates
Plot 34, Manda Hill Road
DIRECTORS P. O. Box 37060
Ackim L.Chalwe* Lusaka
Natasha Chiumya*
Matlhogonolo M. Valela** BANKERS
Dr. Munyaradzi G. Nyandoroh** Absa Bank Zambia Plc
Kenneth Mapingire** Citibank Zambia Limited
Simbarashe Banga** Ecobank Zambia Limited
Stanbic Bank Zambia Limited
COMPANY SECRETARY Standard Chartered Bank Plc
Simbarashe Banga** Zambia National Commercial Bank
REGISTERED OFFICE AUDITOR

Plot 1609/10 EY Zambia
Sheki Sheki Road EY House, Plot 354437,
P O Box 35135 Alick Nkhata Road,
Lusaka, Zambia Lusaka
REGISTRARS
Corpserve Transfer Agents Ltd
6 Mwaleshi Road,
Olympia Park
Lusaka
Zambian * Zimbabwean**

Glossary Of Terms And Abbreviations
1. TAB – Traditional African Beer 17. Profit - Total profit of the Company before deduction
2. IFRS – International Financial Reporting Standards of non-controlling interests
3. IASB – International Accounting Standards Board 18. Overheads - Overheads costs include personnel
4. SEC – Securities Exchange Commission costs, depreciation and amortisation, repair and
5. LuSE – Lusaka Stock Exchange maintenance costs,energy and water, and other
6. VAT – Value Added Tax fixed costs. Exceptional items are excluded
7. FVTOCI – Fair Value Through Other Comprehensive from these costs.
Income 19. Effective tax rate - Income tax expense expressed
8. FVTPL – Fair Value Through Profit or Loss as a percentage of the profit before income tax,
9. ECL – Expected Credit Loss adjusted for share of profit of associates and joint
10. PPE – Property Plant and Equipment ventures and impairments thereof(net of income
11. EPS – Net profit divided by the weighted average tax)
number of shares – basic – during the year 20. Volume - 100 per cent of beer volume produced and
12. Dividends - Proposed dividend as percentage of sold
net profit 21. ZDA – Zambia Development Agency
13. Operating profit - Results fromoperating activities. 22. ZRA – Zambia Revenue Authority
14. Net profit - Profit after deduction of non-controlling 23. ZMW – Zambian Kwacha
interests(profit attributable to equity holders of the 24. USD – United Stated Dollars
Company) 25. EUR – European Union Currency
15. Revenue - Net realised sales proceeds in Zambian 26. ZAR – South African Rand
Kwacha
16. Net debt - Non-current and current interest bearing
loans and borrowings and bank overdrafts less
investments held for trading and cash

Financial
Statements
Plot 1609/10 Sheki Sheki Road

P O Box 35135 Lusaka, Zambia
Tel: +260 962 249 210

NB Annual Report 2023

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ANNUAL

National Breweries Plc is the leading producer of Traditional

National Breweries Plc | Annual Report 2023 2

Corporate Governance and Sustainable Development 11

National Breweries Plc | Annual Report 2023 3

9 months 15 months Year Year Year Year

National Breweries Plc | Annual Report 2023 4

National Breweries Plc | Annual Report 2023 5

The first phases of the business

Revenue growth was however slower at 8% as the offerings.

National Breweries Plc | Annual Report 2023 6

National Breweries Plc | Annual Report 2023 7

Sales volumes grew 28% compared

ENVIRONMENTAL REVIEW control with year-on-year inflation closing the

National Breweries Plc | Annual Report 2023 8

National Breweries Plc | Annual Report 2023 9

National Breweries Plc | Annual Report 2023 10

National Breweries Plc | Annual Report 2023 11

Richard Mazombwe Ackim Lupempu Chalwe Natasha Chiumya Matlhogonolo Mothibedi

National Breweries Plc | Annual Report 2023 12

Dr Munyaradzi Godfrey Kenneth Mapingire Simbarashe Banga

National Breweries Plc | Annual Report 2023 13

Joseph Takayindisa Boniface Katsumbe Joseph Chona

National Breweries Plc | Annual Report 2023 14

Ellah Mwase Chanda Lungu-Sichizya Ntantabutali Kabaghe

National Breweries Plc | Annual Report 2023 15

The Board comprises of an independent

National Breweries Plc | Annual Report 2023 16

The Audit Committee is composed of three

managing, and monitoring all known forms

National Breweries Plc | Annual Report 2023 17

18th May ,2023

20th Oct, 2022

The terms of reference of the GPC are as fol-

National Breweries Plc | Annual Report 2023 18

National Breweries Plc is committed to a sustainability

To enable a sustainable, equitable • Reduce – Through our Group value

National Breweries Plc | Annual Report 2023 20

National Breweries Plc | Annual Report 2023 21

PRINCIPAL ACTIVITIES NUMBER OF EMPLOYEES AND REMU-

RESULTS AND DIVIDEND

* Retired on 30th June 2022

National Breweries Plc | Annual Report 2023 22

PROPERTY, PLANT AND EQUIPMENT

HEATH AND SAFETY

By Order of the Board

National Breweries Plc | Annual Report 2023 23

Approval of the financial statements

National Breweries Plc | Annual Report 2023 24

INDEPENDENT AUDITOR'S REPORT

To the members of National Breweries Plc

Report on the Audit of the Financial Statements

Basis for Opinion

Material uncertainty related to going concern

National Breweries Plc | Annual Report 2023 25

Key Audit Matters

National Breweries Plc | Annual Report 2023 26

Responsibilities of the Directors for the financial statements

Auditors' responsibilities for the audit of the financial statements

National Breweries Plc | Annual Report 2023 27

Report on other legal and regulatory requirements

Zambia Companies Act; 2017