Namibia: Namibia Breweries Limited reports results for six months to June 30

Namibia Breweries Limited (NBL) this week reported a sharp decline in beer export volumes to South Africa, citing a challenging trading environment and the expiration of a major supply agreement with Heineken Beverages South Africa, The Namibia Economist said on September 30.

Releasing its financial and operational results for the six months ended 30 June, 2026, the brewer revealed that export volumes to neighboring South Africa plummeted by 38.2 percent. The decline was attributed to the end of its minimum supply arrangement in April.

According to the NBL, the first half outcome is consistent with the downside scenarios previously communicated to the market, with the impact concentrated in the months following the transition to the new supply model.

Despite the significant decline in its primary export market, the company maintained a strong domestic performance in Namibia.

“The period, therefore, reflects two distinct dynamics: a resilient Namibian business that continued to gain total portfolio market share, and a structurally lower base for South African export volumes,” the brewer noted in the report.

In addition, NBL noted that consumer spending in Namibia remained under sustained affordability pressure, a trend already evident in 2025 and intensified by fuel and diesel price increases in April and May.

NBL Managing Director Waldemar von Lieres said in a statement that the resilience and relentless drive of the people, consumers and partners have enabled NBL to keep winning, delivering and transforming despite a challenging macroeconomic environment.

“NBL continues to operate in a dynamic business environment characterised by ongoing economic pressures across the region. Management is focused on executing its strategic priorities, strengthening core capabilities and maintaining operational discipline,” he said.

Domestic beer volumes recorded a slight 3% decline, though strong momentum in the non-alcoholic segment, led by Windhoek Non-Alcoholic Lemon, helped cushion the category.

Cider volumes expanded by 15% behind the solid performance of Bernini and the new addition of Bernini Mimosa to the ready-to-drink lineup, while wine volumes contracted and spirits remained broadly flat.

Additionally, the strategic inclusion of the newly acquired Red Bull distribution portfolio was a boost to overall volume and revenue, supporting NBL’s ongoing strategy to align its commercial portfolio with evolving consumer demand.

“While external market conditions remain uncertain, the company is well positioned to navigate these challenges through the strength of its brands, routes to market and people,” he concluded.

Meanwhile, the brewer said net revenue decreased by 3.9% to N$2,023 billion (2025: N$2,104 billion), primarily due to the decline in export volumes. A 3.39% increase in excise duties on alcoholic beverages, effective from 25 February 2026, also contributed to the pressure.

Operating profit decreased by 21% to N$222 million (2025: N$279 million), together with a decline in operating margin. The reduction in export volumes together with the reorganisation and realignment costs were the primary drivers of the decline in half-year profits.

Total costs decreased by 1%, as savings from lower production volumes were largely offset by investment in the business, including higher employee-related costs, increased marketing investment in brands and brand equity, and reorganization and realignment costs associated with adjusting the Company to the lower export volumes expected on a sustained basis.

Headline earnings per share declined by 24.3% to 74 cents (2025: 97.8 cents), reflecting the combined effect of the South African volume decline and the cost items described above. Cost normalisation is expected to support an improved cost trajectory in th e second half of the year.

Cash generated from operations improved by 12% to N$482 million (2025: N$430.5 million), reflecting strong underlying operating cash generation.

Net cash flow was nevertheless lower than the prior period, due to higher dividends paid following the strong 2 025 financial year and the timing of capital expenditure of N$156 million (2025: N$102 million) associated with the DBB enterprise resource planning programme , rather than any underlying deterioration in operating performance. Working capital showed a positive year-on-year movement, supported by stable receivables and inventory discipline.

01 October, 2026