Chamwe Kaira
Namibia Breweries Limited (NBL) has advised shareholders that operating profit for the six months ended 30 June 2025 is expected to increase by between 75% and 80%.
NBL also said basic earnings per share are expected to grow by between 85% and 90%, while headline earnings per share will rise by between 90% and 95%, compared to the same period last year.
“This increase is driven by strong volume performance in Namibia, benefits from locally packaged wine plus cider and disciplined cost management,” NBL said.
Interim financial results will be released on or about 19 September.
In the six months to June 2024, net revenue grew by 19.8% to N$4 billion from N$3.3 billion in 2023.
Growth came from wine, cider, and spirits, alongside market share gains in beer. During that period, volumes from South Africa improved, but export revenue slowed. Royalty income, which had fallen by 12.7%, started to recover due to better market conditions in South Africa and some export markets.
Fixed-cost ratios improved as the group benefited from Heineken’s scale and efficiencies from the integrated businesses.
Operating expenses rose by 21.1% to N$3.5 billion from N$2.96 billion, driven by costs tied to the new portfolio, the integration with Distell Namibia, and further integration with Heineken’s expanded portfolio. Operating profit increased by 10.6% to N$466 million from N$421 million.
Capital expenditure reached N$517 million compared to N$244 million in 2023. Projects related to wine and cider packaging were completed, and the first Tassenberg wine was bottled in July 2024.
Savanna and Hunters ciders were fully packaged in Namibia, providing logistic and margin benefits and delivering expected synergies.
In 2024, NBL said it managed cash tightly amid high capital spending, higher debt levels, and difficult market conditions.
Cash generated from operations increased to N$894 million from N$451 million. Net cash outflows from investing and financing activities were N$463 million and N$894 million, respectively, both higher than in 2023.
NBL said the increases reflected its efforts to implement a new integrated business.
Caption
NBL expects higher revenue compared to last year.
