• Market Watch

NBL records N$830m profit

• 9 Hours Ago

Namibia Breweries Limited (NBL) has announced a robust financial and operational performance for the 12-month period ended 31 December 2025. The Group delivered growth across all beverage categories and successfully strengthened its market share despite a constrained consumer environment.

The year’s results reflect a strategic shift towards a focused portfolio and the cumulative benefits of sustained investment in brand equity, production capacity, and route-to-market capabilities. In a market where affordability continues to dictate consumer behaviour, NBL achieved growth through disciplined execution and a focus on product availability.

Net revenue rose by 4% to N$4.8 billion, underpinned by an improved portfolio mix. More notably, operating profit surged by 42% to N$830 million. This substantial growth was driven by margin expansion following the localisation of cider and wine production, alongside ongoing productivity gains. Consequently, earnings per share from continuing operations increased by 47% to 306.1 cents, while headline earnings per share grew by 45%.

Regarding volume performance, beer volumes saw a significant increase, with Windhoek Draught maintaining its market leadership and Windhoek Lager delivering the strongest growth. The localisation of Savanna and Hunter’s production resulted in exceptional performance for the cider category, reducing stockouts and strengthening margins.

The non-alcoholic segment also gained significant traction, with Windhoek Non-alcoholic Lemon more than doubling its volumes. Spirits saw a slight increase led by premium brands like Richelieu, while the mainstream wine category experienced a minor decline due to affordability pressures, though locally produced wines contributed positively to margins.

NBL MD Waldemar von Lieres noted that NBL managed costs through productivity improvements rather than aggressive price hikes, preserving brand value in a tough market. Strong cash generation also allowed the Group to repay its revolving credit facility without requiring material refinancing. Von Lieres emphasised that the performance reflects the strength of the company's strategy and the discipline of its execution, with a focus on keeping brands relevant, accessible, and trusted.

“Our performance reflects the strength of our strategy and the discipline of our execution,” said von Lieres. “In a constrained market, we have focused on what we can control, keeping our brands relevant, accessible, and trusted," von Lieres said.

Looking ahead to 2026, NBL expects the operating environment to remain challenging. Key headwinds include global supply chain cost pressures, a higher tax charge following the end of manufacturing allowances, and reduced volumes to South Africa following the expiry of a supply arrangement with HEINEKEN Beverages in April 2026.

To mitigate these challenges, NBL is rolling out its Digital Backbone programme, a modernised ERP implementation designed to accelerate consumer-focused innovation through data. This aligns with EverGreen 2030, the company’s long-term strategy to become a future-fit organisation focused on productivity and superior growth.