EABL (East African Breweries Limited) has announced its full-year results for the period ended 30th June 2014 with a net sales growth of 4% and 5% increase in profit after tax.
The results were buoyed by a mix of strong performance in Uganda, which grew by 13%. Sales in export markets grew by 50% while spirits, premium and mainstream beer delivered a double digit growth. However Senator Keg significantly declined post the implementation of excise tax.
Kenya delivered a slight decline of 1% on NSV due to Senator Keg performance. This was offset by a strong spirits performance and successful innovations in Jebel Gold and Senator Dark, both in the emerging category, alongside new marketing campaigns such as Tusker ‘Twende Kazi’.
In Tanzania, business performance was affected by the short-term effect of EABL’s Route to Consumer changes. Serengeti Premium Lager grew by 16%, driven mainly by the Fiesta Music Tour and successful introduction of Serengeti Platinum.
Other highlights of the report:
- Cost of sales improved by 1%, driven by supply chain efficiencies.
- Administrative expenses increased by 24% including one-off restructuring costs. Excluding these costs, underlying growth was 8%.
- There was a 13% rise in selling and distribution costs as the business continues to invest in its brands.
- As a result of implementation of tax efficiency initiatives, the business lowered its effective tax rate by 7% to 34%.
- Net capex investments rose to 6.8 billion in support of future growth.
- A final dividend of Kshs 4/- per share has been recommended.