Meatco’s audited annual financial statements for the financial year ended 31 January 2026, recently released, reflect a year in which the entity navigated one of the most challenging operating environments in recent history.

Following successive years of drought and the continued rebuilding of Namibia’s national cattle herd, livestock available for slaughter declined significantly across the country, directly affecting throughput and revenue throughout the red meat value chain.

South of the Veterinary Cordon Fence, cattle throughput declined by 53%, from 75 268 cattle in the previous financial year to 35 594 cattle during the reporting period.

Consequently, Group revenue declined from N$1.865 billion to N$1.108 billion. While these figures reflect the difficult operating environment, they represent only one part of the corporation’s performance story.

Resilience 

Despite processing less than half the previous year’s slaughter volumes, Meatco remained profitable, reporting a profit after tax of N$40.5 million.

The corporation generated positive operating cash flows of N$73.5 million, increased cash reserves from N$86.2 million to N$128.3 million, strengthened producers’ equity from N$568.3 million to N$701.3 million, and reduced accumulated losses by more than N$40 million.

These results demonstrate the positive impact of the corporation’s turnaround strategy, improved operational efficiency, disciplined financial management, and continued focus on building a stronger, more sustainable business.

Meatco board chairperson Stephanie de Klerk said the audited results should be considered in the broader context of the livestock industry’s cyclical nature.

“The financial year under review was marked by exceptionally low cattle availability following the prolonged drought and national herd rebuilding. These circumstances were beyond the corporation’s control and affected the entire livestock industry. Despite these conditions, Meatco remained profitable, strengthened its balance sheet and continued to implement the strategic reforms necessary to position the corporation for long-term sustainability,” said De Klerk.

She said the Board remained encouraged by the progress in strengthening the corporation’s financial resilience while continuing to fulfil Meatco’s national mandate.

Meanwhile, Meatco’s interim CEO Albertus Aochamub said the financial statements tell two equally important stories.

“The first is the impact of significantly lower cattle throughput on revenue. The second, and equally important, is how the corporation responded. Despite processing 53% fewer cattle, Meatco remained profitable, generated positive cash flows, increased available cash, strengthened producers’ equity and continued reducing accumulated losses.

These are clear indicators that the turnaround strategy is producing tangible results and that the corporation is becoming financially stronger.”

He added that management remains focused on improving operational performance, maintaining market access, enhancing efficiencies and preparing the corporation for increased throughput as Namibia’s national cattle herd continues to recover.

Looking ahead

The Board of Directors will present Meatco members and the shareholder with a comprehensive report on the corporation’s audited financial performance, governance matters, operational achievements and strategic outlook at the annual general meeting scheduled for 31 July 2026.

The AGM will provide stakeholders with detailed insight into the audited financial statements, the implementation of the turnaround strategy, governance developments and the corporation’s priorities for the coming financial year.

Meatco remains committed to transparency, sound corporate governance and creating sustainable value for livestock producers, employees, customers, shareholders and the Namibian economy.

Key message

The 2026 audited financial statements tell two stories. The first is the impact of a 53% reduction in cattle availability following drought and national herd rebuilding.

The second, and equally important, is that Meatco remained profitable, strengthened its balance sheet, increased cash reserves, reduced accumulated losses and continued implementing its turnaround strategy despite one of the most difficult operating environments in recent years.

-ohembapu@nepc.com.na