CHAMWE KAIRA
Namibia Breweries Limited (NBL) reported a 21% decline in operating profit to N$221.8 million for the six months ended 30 June 2026, mainly due to lower export volumes to South Africa and costs associated with reorganising the business.
Operating profit fell from N$279.3 million in the corresponding period last year, while profit before tax declined 22.1% to N$206.3 million from N$264.7 million.
Profit attributable to owners of the parent decreased to N$153.8 million from N$198.9 million, while headline earnings per share fell 24.3% to 74 cents from 97.8 cents.
NBL said the results reflected two different dynamics during the period, with resilient domestic performance offset by a structurally lower base of exports to South Africa.
Net revenue declined 3.9% to N$2.023 billion from N$2.104 billion, primarily due to the reduction in export volumes.
The company said the minimum-volume supply commitment with Heineken Beverages South Africa formally ended in April 2026. NBL said all commitments under the agreement had been honoured and settled in full by Heineken Beverages.
The relationship between the two companies now operates under a standard, forecast-based intercompany supply model into South Africa.
NBL said a 3.39% increase in excise duties on alcoholic beverages, effective from 25 February 2026, also contributed to pressure on its financial performance.
Total costs declined by 1%, although savings from lower production volumes were largely offset by higher employee-related costs, increased marketing investment and costs related to the reorganisation and realignment of the business to lower expected export volumes.
Despite the pressure on overall volumes, NBL said its multi-category portfolio helped cushion the business against category-specific declines.
Beer volumes in Namibia fell 3%, while cider volumes increased 15%. The company said growth in ciders, low- and no-alcohol products and its newly added energy drink category helped offset declines in beer and wine.
Windhoek Non-Alcoholic Lemon supported growth in the non-alcoholic range, while Bernini continued to perform within the ready-to-drink category. The launch of Bernini Mimosa also expanded the cider range.
Wine volumes declined in Namibia, while spirits volumes were broadly unchanged.
The company’s new Red Bull distribution agreement contributed positively to both volume and revenue.
NBL said it gained total portfolio market share in the domestic market despite continued affordability pressures on consumers.
The company expects cost normalisation to support an improved cost trajectory in the second half of the financial year.
The board declared an interim dividend of 74.45 cents per share, compared with 96.29 cents declared for the corresponding period in 2025.
NBL’s last day to trade cum dividend is 9 October 2026, with the shares trading ex-dividend from 12 October. The record date is 16 October, and the dividend will be paid on 12 November 2026.
