A Look At The EABL's 2012 Earnings
EABL is the bellweather counter at the Nairobi Securities Exchange. It is also the largest by market capitalisation weighing in at Sh181.087 billion and $2.1b and that makes it the heaviest of the heavyweights in Nairobi. This year, EABL has posted a return of +34.593 per cent which is an outrageously good return in this uncertain world of ours. In fact, the likes of EABL and Guiness Nigeria have been on a tear for some time.
The MD Devlin Hainsworth presided over a 145 per cent share price increase during his tenure at Guinness in Nigeria. The point is that these folks have been the Belles of the Ball for quite a while. On Friday, EABL released its FY Earnings and we got a chance to take a deep dive into the company. The tape reads as follows; turnover and FY PBT increased by 24 per cent, earnings per share expanded 45 per cent. EABL only recently plotted its escape from its gilded Kenya cage; Uganda +38 per cent, Tanzania +76 per cent, the Great Lakes +30 per cent all confirm the merits of the more offensive regional game plan which will continue to accelerate and gain traction.
At the micro level, Tusker beer remains plain iconic and bullet proof. Sure competition might come and evidently is well heeled but its only nibbling at the edges. Spirits spiked big at +47 per cent with Johnnie Walker surging 74 per cent year on year. If you ever want the finger print evidence of the emerging African middle class that Johnnie Walker data is it.
Hainsworth characterised the future as a 'Golden Era' and the business as a 'strong business getting stronger.' There was some noise on the balance sheet via a one off extraordinary gain but even after stripping that out, this is a muscular business which is only just starting to flex its muscles. EABL is surely an anchor holding in any portfolio.