East African Breweries said net profit for the year through June rose six per cent to Sh8.5 billion ($81.89 million), helped by reduced operating costs and a slight rise in sales.
The brewer, controlled by Britain's Diageo, said in a statement on Thursday that net sales rose two per cent, while it saved Sh2.3 billion in operating costs in the period.
It said net sales in Kenya - which makes up about 70 per cent of its profits - were up four percent despite higher excise duty and drought-induced inflation. Sales in Uganda rose seven per cent and shrunk 12 per cent in Tanzania.
“We demonstrated resilience delivering this solid set of financial results despite challenging times, mainly characterised by inflationary pressures and regulatory volatility," Andrew Cowan, its managing director, said.
It said sales of new beer and spirit brands contributed an additional Sh19 billion in total revenue across its East African markets, a 15 per cent rise.
It recommended a final dividend of 5.50 shillings per share, unchanged from 2016.
The company said it had reached a settlement with Tanzania's Fair Competition Commission on the status of its acquisition of a controlling stake in Serengeti Breweries, Tanzania's second biggest brewer, but it did not reveal what the settlement consisted of.
In 2015, the commission began a process to cancel approval for EABL's $60 million purchase of a 51 per cent stake in Serengeti, saying it had not met some pledges made when it won permission for the deal in 2010.
Earlier this month, the brewer started construction of a Sh15 billion plant in Kisumu, which is expected to be finished in the next two years.
The brewer is expected to give more details of its performance on Friday.
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