Windhoek:Namibia Breweries Limited (NBL) has reported a decline in its half-year operating profit to N$222 million from N$279 million. This decrease follows the end of its minimum supply arrangement with Heineken Beverages South Africa, which resulted in a 38.2% drop in beer exports to the South African market.

According to Namibia Press Agency , NBL Managing Director Waldemar von Lieres highlighted the company's perseverance in a challenging economic climate during a media briefing. He attributed the company's continued success to the efforts of its people, consumers, and partners.

For the six months ending 30 June 2026, net revenue fell by 3.9% to N$2.023 billion, down from N$2.104 billion the previous year. This decline was primarily due to reduced export volumes and an increase in excise duties on alcoholic beverages that took effect on 25 February. Headline earnings per share also dropped by 24.3% to 74 cents, compared to 97.8 cents the previous year, reflecting the impact of the South African volume loss and associated reorganisation costs.

NBL declared an interim dividend of 74.45 cents per share, down from 96.3 cents last year. Von Lieres noted that the end of the supply arrangement in April aligned with the company's previously communicated downside scenarios. Despite economic pressures, NBL increased its market share in Namibia, even as consumers dealt with rising fuel and diesel prices in April and May.

In Namibia, beer volumes fell by 3%, but this was offset by growth in the non-alcoholic beverage segment, led by Windhoek Non-Alcoholic Lemon. Cider volumes increased by 15%, while wine volumes declined, and spirits remained stable.

The company generated 12% more cash from operations, reaching N$482 million. However, net cash flow decreased due to higher dividends and N$156 million spent on an enterprise resource planning programme. Von Lieres expressed optimism about cost normalisation supporting an improved cost trajectory in the year's second half.