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DOUBLE PROFITS

EABL profit more than doubles to Sh15.6bn on high sales

Withdrawal of Covid measures, which saw bars reopen, boosted product uptake.

In Summary

•The profit is up from the Sh7 billion it posted in the financial year ended June 2021.

•During the year under review, net sales grew by about 27 per cent to Sh109.4 billion.

Production at the East African Breweries Limited plant in Nairobi
Production at the East African Breweries Limited plant in Nairobi
Image: FILE

Alcohol manufacturer-East African Breweries Limited (EABL) has more than doubled its profit for the year ended June to Sh15.6 billion, buoyed by the reopening of economies after the easing of Covid-19 measures.

This is from the Sh7 billion it posted in the financial year ended June 2021.

The strong performance comes with the reopening of bars and the service industry, which boosted sales of beer and spirits during the period.

During the year under review, net sales grew by about 27 per cent to Sh109.4 billion, up from Sh86 billion the previous year.

The Group’s net sales were boosted by double-digit growth across all its markets and categories owing to an improved operating environment as outlets reopened, coupled with sustained investment in marketing and commercial activities.

The Kenyan market recorded the highest sales with revenues growing by 30 per cent-fuelled by premium and upper mainstream segments.

It was followed by Uganda which recorded a 24 per cent growth in sales while the Tanzania unit had a 21 per cent growth.

EABL navigated rising inflation and increase in excise taxes through strategic pricing and effective cost management to deliver its highest profit in 5 years

EABL delivered a strong beer performance, up 27 per cent, aided by the beer recovery in Kenya.

The Group’s spirits category was up 26 per cent, boosted by a 27 per cent growth in mainstream spirits.

EABL Group managing director and CEO Jane Karuku, said: " These results reflect the high-performance culture we have created across the business, the rigorous execution of our strategy, the strength of our portfolio across categories and our agility in responding to emerging trends and insights.”

She, however, notes the macro-economic environment is still challenging, with the market experiencing a volatile tax and regulatory policy which will continue to impact business.

EABL’s board has declared a final dividend of Sh7.25 per share, adding to an interim dividend of Sh3.75 as the manufacturer resumes the issuance of dividends at the full year stage after scrapping the pay-out last year.

This brings EABL’s total dividend for the period to Sh11 per share or a cumulative pay-out of Sh5.7 billion.

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