Meatco’s future in doubt
Key Figures:
N$757 million decline in group revenue
N$1,108 billion latest group revenue, down from N$1,865 billion
N$42,5 million profit before tax, down from N$105,7 million
N$186 million govt grants recognised as operating income
N$134,4 million accumulated group loss
47% decline in cattle supply, from 83 112 to 43 777
N$2,56 million advances remaining unaccounted for
By Sonja Smith
Independent auditors have raised doubt over the Meat Corporation of Namibia’s (Meatco)’s ability to continue operating after its revenue fell by N$757 million and no government grant was allocated to it for the 2026/27 financial year.
This is according to Meatco’s latest financial statements for the year ended 31 January 2026, seen by Network Media Hub (NMH), and released on Friday last week.
The statements show that group revenue fell by 40,6%, from N$1,8 billion in 2025 to N$1,1 billion in 2026, while accumulated losses stood at N$134,4 million.
In its independent audit report signed on 24 July 2026, Grand Namibia, highlighted a ‘material uncertainty related to going concern’ - a warning that conditions exist which may threaten Meatco’s ability to continue operating.
“We draw attention to Note 5 of the Directors’ Report, which indicates that the group’s revenue declined by N$757 million during the year ended 31 January 2026, and, as of that date, the group had an accumulated loss balance of N$134 million,” the auditors said.
They said that no government grant had been allocated to Meatco in the 2026/27 national budget.
“These events or conditions indicate that a material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern,” the auditors said.
The auditors issued an opinion, finding that Meatco’s financial statements fairly presented its financial position in all material respects. They stressed that their opinion was not modified because of the going-concern warning.
Board rejects uncertainty
The meatco’s board is made up of Stephanie De Klerk as deputy chairperson, Joseph Andreas, Martin Hilbert, Cyprianus Khaiseb, Adolf Muremi, Patricia Olivier, Abiud Tjipangandjara, Patterson Tjipueja and Diana van Schalkwyk.
The auditor’s assessment contrasts with the Meatco board’s conclusion in the financial statements.
“Based on the above assessment, the Board is satisfied that the Corporation and the Group have adequate resources to continue in operational existence for the foreseeable future.
“The Board is not aware of any material uncertainties related to events or conditions that may cast significant doubt on the Corporation’s or the Group’s ability to continue as a going concern,” the directors stated.
The board said it considered Meatco’s liquidity, projected cash flows, debt obligations, funding arrangements and continued access to banking facilities.
It also relied on “confirmed and anticipated shareholder support through government grants and capital support mechanisms”.
Despite the auditor’s warning, Meatco projects consolidated revenue of approximately N$2 billion and group net profit after tax of N$80,9 million for 2026/27.
Grants prop up profit
Meatco remained profitable despite the decline in revenue and cattle throughput.
Profit before tax dropped by approximately 60%, from N$105,7 million to N$42,5 million, while net profit fell from N$43,8 million to N$40,5 million.
However, Meatco recognised N$186 million in government grants as operating income during the year. The grants accounted for almost 94% of its N$198,3 million in other operating income.
NMH calculations based on the statements show that, without the grant income, Meatco would have recorded an operating loss of approximately N$109 million instead of its reported N$77 million operating profit.
Cattle supply collapses
Cattle supply south of the Veterinary Cordon Fence fell by 52,7%, from 75 268 animals to 35 594, while throughput declined from 18 673 tonnes to 8 930 tonnes.
North of the fence, cattle supply increased from 7 844 to 8 183 animals.
Overall supply across Meatco’s two operating areas declined by approximately 47%, from 83 112 to 43 777 animals.
The board attributed the decline to the livestock cycle following the drought.
“For the year ended 31 January 2026, the Group reported a reduction in slaughter numbers, just like any other year after a drought season,” it said.
N$2,5m unaccounted for
The statements also reveal that N$2,5 million advanced for procurement remained unaccounted for at the end of the financial year.
“A provision of N$2,5 million has been recognised in respect of cash advances issued for procurement purposes that remain unaccounted for at year-end,” the directors said.
“The matter is under investigation and management has instituted appropriate measures to determine the cause of the loss, strengthen internal controls, and pursue recovery where possible.”
The report does not identify who received the advances or what was supposed to be procured.
Meatco’s deputy board chairperson, Stephanie de Klerk, said the auditors’ warning and the board’s assessment are not contradictory.
She attributed the uncertainty to prolonged drought, reduced cattle availability and the rebuilding of the national herd.
She explained that despite slaughter falling by more than 50%, Meatco remained profitable, generated N$73,5 million in operating cash flow and increased its cash reserves to N$128,3 million.
“The reduction in revenue primarily reflects the significant decline in cattle throughput rather than a deterioration in Meatco’s business model or market position,” she said.
On the N$2,5 million procurement advances, De Klerk said the matter is under investigation to recover the funds..
