EABL has today announced that its net profit for the half year ending on June 2019 has increased by 33% to Ksh. 6.6 billion.
The company has reported that there was a 12% growth in net revenue to Kshs 82.5 billion. Operating expenses during the period increased. Selling and distribution costs increased by 16% to Ksh. 3.7 billion from 3.1 billion in 2018. Administrative expenses increased to Ksh. 4.2 billion from ksh. 4.0 billion in 2018.
Net sales in bottled beer recovered strongly to grow by 8% while Senator sales were up 32%. The Group’s mainstream spirits performance was consistent with regional growth, expanding by 23%. Scotch whisky sales were also up by 21%.
All the markets that EABL operates in registered growth in net sales. In Kenya, EABL’s largest business, net slaes were up 13% driven by growth in mainstream spirits, Scotch and Senator Keg, which were up 30%, 28% and 32%. Bottled beer performance recovered during the period, returning 3% growth. Uganda’s net sales increased by 8%, largely driven by the double-digit growth in premium and mainstream beer, at 24% and 33% respectively. Tanzania’s net sales were up 20%. Serengeti is now Tanzania’s biggest beer brand family which grew 46% in the period.
Capital expenditure during the period was Ksh. 4.8 billion from ksh. 5.0 billion in a similar period in 2018. They included;
- Construction of new brewery in Kisumu – KES 3.4bn. Total cost of the project is expected to be Ksh. 14bn (initial estimate was Ksh. 15bn). The company has spent Ksh. 10.2bn so far, remaining KES 3.8bn to be paid in F19 H2 and F20
- IDU spirits upgrade in Uganda – KES 49m
- Final payments on F18 beer and spirits capacity expansions in Kenya – KES 154m
- Investment in returnables and coolers for growth – KES 380m
- Upgrade electrical infrastructure in SBL – KES 124m
- Investment behind brand Innovation – KES 100m
- Efficiency improvements, Kenya and Uganda in water and energy usage
- Roofing of the logistics yard in Uganda
- Vehicle/pedestrian segregation and Electronic Bottle Inspector (EBI) side wall inspection in SBL
- Water recovery projects to commence in Kenya and Uganda
The Board of Directors has recommended a final dividend of Ksh. 6.00 per share, resulting in a total dividend of Kshs 8.50 per share. This is an increase from Kshs 7.50 per share a year ago.