East African Breweries Limited (EABL) profit after tax in a year to June 30, 2024 declined to Ksh 10.9 billion from Ksh 12.3 billion the firm reported over the same period last year.
According to the brewer, the 12pc drop in profitability, despite net sales rising 13pc to Ksh 124.1 billion was triggered by significant increases in interest rates and currency devaluation in first half of the year under review.
“EABL has demonstrated resilience and strategic agility, achieving commendable results on the back of a myriad of challenges during the period. The past year has been marked by significant macroeconomic volatility across East Africa. Inflationary pressures, regulatory changes, rising interest rates and fluctuating currency posed substantial hurdles for consumer spending and business operations,” said Dr Martin Oduor Otieno, EABL Chairman.
During the period under review, sales in Kenya grew 15pc, Uganda 12pc and Tanzania 9pc.
EABL also reported a 12pc increase in beer sales and 14pc growth in spirit sales.
The firm’s operating prot excluding foreign exchange losses surged 10pc to Kshs 28.8 billion from Ksh 26.3 billion as pricing and productivity offset cost inflation.
“We have delivered a solid double-digit topline and operating profit growth in a challenging environment, highlighting the strength of our core business and our ability to capture market opportunities effectively. The results were achieved by leveraging our advantaged portfolio, brilliant commercial execution, and exciting, consumer-led, innovations. Additionally, effective supply productivity allowed us to mitigate some of the impact of cost inflation,” said Jane Karuku EABL Chief Executive Officer.
The EABL Board has declared a final dividend of Ksh 6 per share, bringing the total dividend to Ksh 7 per share, an increase of Ksh 1.50 per share compared to the total dividend in the prior year.
