East African Breweries PLC (EABL) has announced that it has reported a Ksh. 8.7 billion net profit for the half year ended 31st December 2021. This is an improved result from the Ksh. 3.8 billion the company reported in the same period in 2020.
The improved profit after tax was driven by higher net sales, margin expansion, cost management and the re-opening of bars in Kenya in the second quarter. This is the best EABL interim profit after tax has reported in the last 5 years.
In the period in question, EABL registered Ksh. 54.9 billion in net sales representing a 23% growth compared to the same period last year. Volumes grew at 23%, driven by investment behind brands and innovation in the route to market in response to consumer behaviour shifts. Additionally, the continued investment in capacity of Ksh. 6.2 billion enabled EABL to rapidly respond to the increased consumer demand.
Markets sales highlights for the half year ended 31st December 2021:
- Kenya: Net sales increased 27% primarily due to accelerated strategic investment behind brands and channels. The re-opening of bars in the second quarter further improved the net sales growth.
- Uganda: Net sales grew 18% driven by the market’s response to the shifting consumer trends as well as strategic pricing decisions. Uganda’s channel delivery model ensured outstanding last-mile success, guaranteeing growth.
- Tanzania: Net sales grew 15%, with beer and spirits registering double-digit growth.
EABL Managing Director Jane Karuku said, “Our regional effort to support the hospitality sector through the pandemic has gathered pace, with 60% of the Raise the Bar fund (Ksh. 570 million) already spent. This fund is enabling physical and digital support to bars welcoming customers back after lockdowns. EABL has also complemented government efforts across the region in driving national programmes to combat the impact of COVID-19, vaccinating our employees, their families, and consumers.”
Looking into the future, Mrs. Karuku added: “The trading environment remains uncertain with the lingering socio-economic impact of the pandemic, excise tax volatility, and the upcoming electioneering period in Kenya. However, we are cautiously optimistic that the regional economies will continue on the recovery path, sustaining growth momentum across East Africa.”
The Board has recommended an interim dividend of Ksh. 3.75 per share. This reflects EABL’s strong performance and confidence in the long-term growth and sustainability of our business.
East African Breweries Limited (EABL) is a regional manufacturer of alcohol drinks in three core markets of Kenya, Uganda and Tanzania while their products are sold in more than 10 countries across Africa and beyond. Their brands include Tusker, Guinness, Bell Lager, Serengeti Lager, Kenya Cane, Chrome Vodka, Johnnie Walker, Captain Morgan and Smirnoff.