NBL half-year profits drop to N$222m

Adolf Kaure 

Namibia Breweries Limited (NBL) announced its financial and operational performance for the first half of 2026 on Monday in Windhoek.  

The results delivered a resilient domestic performance despite a tougher trading environment. 

The results showed the company’s operating profit fell 21% to N$222 million (compared to N$279 million in the same period of 2025). 

NBL reported that results were affected by the end of the minimum supply arrangement with Heineken Beverages South Africa in April 2026, with beer export volumes to South Africa declining by 38.2%. 

The reduction in export volumes, alongside the reorganisation and realignment costs, was the primary driver of the decline in half-year profits. The period, therefore, reflects two distinct dynamics. These dynamics include a resilient Namibian business that continued to gain total portfolio market share and a structurally lower base for South African export volumes. The first-half outcome consists of the downside scenarios previously communicated to the market, with the impact concentrated in the months following the transition to the new supply model.  

In addition, 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.  

“The resilience and relentless drive of our people, consumers and partners have enabled NBL to keep winning, delivering and transforming despite a challenging macroeconomic environment,” said NBL managing director, Waldemar von Lieres. 

NBL responded by driving relevance and affordability for customers and consumers. The company continued to gain total portfolio market share, confirming that our consumer focus is providing positive returns.  

Net revenue 

Net revenue decreased by 3.9% to N$2 023 million (compared to
N$2 104 million in the same period of 2025), primarily due to the decline in export volumes.  

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 reorganisation and realignment costs associated with adjusting the company to the lower export volumes expected on a sustained basis.  Cash generated from operations improved by 12% to N$482 million (compared to N$430.5 million in the same period of 2025), reflecting strong underlying operating cash generation.  

Net cash flow was nevertheless lower than the prior period, due to higher dividends paid following the strong 2025 financial year and the timing of capital expenditure of N$156 million (N$102 million in 2025). 

Working capital moved positively year on year, supported by stable receivables and inventory discipline.  

Beer volumes 

Beer volumes in Namibia declined slightly by 3%, with strong momentum in the non-alcoholic range, led by Windhoek Non-Alcoholic Lemon, meaningfully cushioning the category.  

Cider volumes in Namibia grew 15%, with Bernini continuing to perform well from a small base within ready-to-drink (RTD) beverages, with the launch of Bernini Mimosa adding to the range.  

Wine volumes in Namibia declined, while Spirits volumes were broadly flat; the newly added Red Bull distribution agreement category contributed positively to both volume and revenue.  

-akaure@nepc.com.na 

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