NBL announces half year financial results for 2023

Namibia Breweries Limited (NBL) today announced the summarized consolidated financial results for the 6 months which ended December 2023.

As a proudly Namibian business that is vested in growing the country’s economy for the past 103 years, NBL’s first half financial results show that it is geared towards evolving as a future-fit business during tough economic times.

Socio-economic conditions remained challenging, and income disparity increased. NBL’s dominant position in the mainstream beer market showed strain as consumers faced competing household demands with limited disposable income.

Despite a decline in beer sales by 13,7% due to challenging economic conditions, NBL’s net revenue increased by 15% to N$2,1 billion. This because of the successful integration of the Distell portfolio, which performed well year-on-year and a price increase to cover inflation.

NBL placed significant focus on cash management over the last six months. This came on the back of obtaining additional financing to acquire Distell, which placed specific focus on effectively gearing NBL’s financial position and leveraging the expanded portfolio to optimise cash generation in the short term.

As a result, net cash flow from operating activities increased to N$482 million from N$199 million the previous year.

NBL’s Managing Director Peter Simons says in view of the subdued consumer demand, the company will continue its business initiatives to boost sales, while managing costs in line with volumes.

“In the challenging economic and consumer landscape, we will further leverage the expanded portfolio for growth and optimising the combined supply chain for efficiency and compliance,” says Simons.

He concluded that having laid the groundwork through integration, NBL is now poised to take the next steps to support its long-term sustainability as a proudly Namibian company and be a vital part of Heineken Beverages to create a regional beverage champion for Southern Africa.