NEGATIVE IMPACT ON BUSINESS

EABL to lose Sh2.86bn in reduced sales due to pandemic

In a statement to shareholders, EABL said Covid-19 has negatively impacted business.

In Summary

• EABL's current performance forecast indicates a decline in profit after tax of approximately 25 per cent for the financial year ending June 30.

• With bars and night clubs closed as a directive to reduce the coronavirus spread, alcohol sales have been dwindling over the past two months.

PROFITABLE: East Africa Breweries is among the bluechip companies listed at the Nairobi Securities Exchange.Photo/File
PROFITABLE: East Africa Breweries is among the bluechip companies listed at the Nairobi Securities Exchange.Photo/File

East African Breweries Limited is set to lose Sh2.86 billion over reduced sales as a result of the coronavirus.

In a statement to shareholders, the beer maker said the Covid-19 pandemic and subsequent measures taken across the country have negatively impacted business.

"Consequently, the board of directors of the company hereby informs its shareholders and the general public that EABL's current performance forecast indicates a decline in profit after tax of approximately 25 per cent for the financial year ending June 30," EABL board chair Martin Oduor-Otieno said.

Last year, the firm posted a 57.34 per cent increase in net profit to Sh11.5 billion, largely driven by a positive macroeconomic environment.

However, with bars and night clubs closed as a directive to reduce the coronavirus spread, alcohol sales have been dwindling over the past two months.

"The company has deployed a raft of measures to minimise the impact of the pandemic on its business," Otieno said.

EABL reported a Sh7.2 billion profit after tax in the first half of the financial year, largely boosted by the sale of Senator Keg.


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