East African Breweries Limited (EABL) has announced financial results for the year ended June 2018 and has reported a profit after tax of Ksh. 7.2 Billion. This represents a 14% reduction from the previous period.
The beer manufacturer however registered a 5% revenue growth to stand at Ksh. 73.5 Billion as compared Ksh. 70.3 Billion in the previous financial year. The rise in revenue was driven by the strong performance of the mainstream spirits portfolio which was up 23% and beer which increased by 4%. Additionally, brands like Serengeti Lite, Black & White, Captain Morgan Gold, Tusker Cider and Uganda Waragi flavours also did well.
Capital expenditure in the financial year stood at Ksh. 13 Billion. One notable investment is the Senator Keg line at the Kisumu Brewery. The project is set to be commissioned later this year and apparently EABL has already contracted 15,000 farmers to supply the brewery with Sorghum.
The Board of Directors has recommended a final dividend of Ksh 5.50 per share. The total FY 2018 dividend will stand at Ksh 7.50 per share.