At a Glance
- Namibia Breweries’ revenue climbed 10% to $121.4 million, supported by higher volumes and price adjustments.
- Net profit nearly doubled to $11.5 million as local cider and wine boosted margins.
- Windhoek Lager grew market share, while non-alcoholic and cider products drove incremental sales.
Namibia Breweries Ltd., part of Heineken Beverages, reported stronger earnings for the first half of 2025, lifted by higher volumes, price adjustments to offset inflation, and better margins from local production.
The brewer reported that its net profit for the six months ended June 30 almost doubled to NAD198.9 million ($11.5 million), compared with NAD106 million ($6.1 million) a year earlier. Revenue rose nearly 10 percent to NAD2.1 billion ($121.4 million).
Stronger margins drive profit
Operating profit climbed 79 percent to NAD279.3 million ($16.1 million), up from NAD156.2 million ($9 million) a year ago. Profit attributable to shareholders advanced 87 percent, while earnings per share jumped to NAD0.963 from NAD0.514.
Margins widened as discounts were pared back and locally packaged cider and wine reduced reliance on imports. Operating expenses rose 3.5 percent to NAD1.83 billion ($105.5 million), reflecting brand spending and the rollout of a new enterprise planning system. But sales growth and efficiency gains more than offset the cost increases.
Beer and cider remain key
Beer continued to anchor sales, with flagship Windhoek Lager expanding its market share. The brand was recently named Namibia’s most admired alcoholic beverage at the Brand Africa 100 awards.
Non-alcoholic products also gained ground. Windhoek Non-Alcoholic Lemon doubled its volumes, albeit from a small base. Cider production in Namibia, including Savanna and Hunter’s, boosted margins by cutting transport costs, while Bernini added incremental growth.
Wine sales slipped slightly in volume but delivered better revenue through price increases. Tassenberg and Castello held steady as household names. By contrast, soft drinks and bottled water were flat, while fruit juice exited the portfolio following the February end of NBL’s FruitTree distribution agreement with PepsiCo.
Exports to South Africa eased but continue under a supply deal for Windhoek that runs until April 2026.
Dividend signals confidence
The board declared an interim dividend of NAD0.963 per share, up from NAD0.52 last year, payable Nov. 13 to shareholders on record by Oct. 10.
Capital expenditure declined to NAD102 million ($5.9 million) after heavy outlays in earlier periods. Management credited its “Fund the Growth & Fuel the Profit” program with improving cash flow by tightening stock and receivables while helping offset higher input costs.
Looking ahead
NBL said its integration with Heineken is yielding efficiencies in beer and cider, while supporting a broad beverage portfolio. Investments in local production and brand building remain central, though the company acknowledged affordability pressures for consumers.
Total assets slipped 1.5 percent to NAD3.81 billion on lower cash balances following project spending. Retained earnings rose 4.3 percent to NAD2.21 billion ($127.7 million), reflecting stronger profits and cash generation.
