East African Breweries PLC (EABL) has announced that it has reported a Ksh. 6.8 billion net profit for the half year ended December 31, 2023. This is a 22% decline from the previous period.
According to the company, the dip in EABL’s half year profit after tax has been attributed to macro economic driven cost inflation and rising finance costs. Further, the devaluation of local currency has resulted to (FX) loss of Ksh. 2.3 billion, an increase of Ksh. 2.1 billion versus same period last year.
The company reported a Ksh. 66.5 billion in net sales for the half year ended December 31, 2023, representing a 16 percent growth compared to prior year. EABL Group’s volumes increased by 2%, lifted by resilient consumer demand. The Group reported net sales growth across the three markets: Kenya at 10%, Uganda at 31% and Tanzania at 9%. Additionally, beer and spirits categories grew at 18% and 13% respectively.
EABL Group Managing Director and CEO, Jane Karuku, said: ‘’We have achieved a resilient set of results in the half-year period. Our great brand building, brilliant commercial execution, as well as consumer insight led innovation, has allowed us to continue our revenue growth momentum. However, our bottom line has been impacted by increased costs of inputs, currency devaluation and rising interest rates.
Following the commissioning of a microbrewery, the company has expanded its beer and cider portfolio. EABL has continued to invest behind its brands with advertising and promotions spend rising 16.5 percent to Ksh. 6.1 billion. The company’s Kshs 1.2 billion microbrewery in Kenya started producing products brands during the half.
Looking ahead, Ms. Karuku said: “Our priorities for the second half are clear: we will remain consumer centric and execute brilliantly to keep up with the dynamism in the market, drive cost efficiencies to grow margins and invest smartly in our brands and business. Further, we will continue to deliver against our ESG commitments, whilst driving high performance culture and engagement of our people.”
The EABL board of directors has recommended an interim dividend of Ksh. 1 per share to be paid on or about April 26, 2024.