East African Breweries Limited (EABL) withstood
shrinking disposable income that saw consumers in East Africa cut alcohol
budget by 0.2 per cent to post 12 per cent growth in net earnings for the year
ended June 30, 2025.
According to the Kenya Institute for Public Policy Research and Analysis (Kippra), a significant portion of Kenyans, around 15 million, drink regularly, with 12 million reportedly spending an average of Sh100 per occasion.
Sit-in customers in establishments spend an average of Sh300 per day, while those taking alcohol away typically spend at least Sh210 per day.
Speaking during an investor briefing on Thursday in Nairobi, EABL board chairman Martin Odour Otieno pleaded with regional governments to carefully consider policies that do not harm investors and the general economy.
His comment comes at a time when Kenya has proposed a raft of policies that, if enacted in their current form, will pile more pressure on businesses producing and selling alcoholic beverages in the country, in addition to their already high tax burden.
The National Policy for the Prevention, Management and Control of Alcohol, Drugs and Substance Abuse, launched on Wednesday, proposes a sweeping ban on the sale of alcohol in supermarkets, petrol stations and restaurants.
It has also recommended raising the legal age for drinking, selling, or handling alcohol to 18 to 21 years, a decision the government says is based on science about adolescent brain development and public health risks.
This has triggered a storm, with traders protesting that the decision will destroy jobs and create a thriving bootleg market.
He said that the business continued to navigate external pressures, including the proliferation of illicit alcohol, sustained input cost inflation, and declining consumer spending driven by reduced disposable income.
“These factors underscore the need for stronger regulatory enforcement and collaborative action to safeguard consumers and legitimate players within the sector,’’ Odour said.
The financial results show that the Nairobi Securities Exchange (NSE) giant recorded a net profit of Sh12.2 billion on forex gains as East Africa’s currencies, led by the Kenyan shilling, gained by over 20 per cent against the US dollar.
Shareholders of the East African Breweries Limited (EABL) will earn a total of Sh8 per share after the brewer cut finance costs by 28 per cent per cent to Sh5.9 billion and realized forex gains of Sh313 million, reversing last year’s losses that hit Sh3.9 billion.
Net revenue grew four per cent to Sh128.8 billion while volume grew two per cent as both beer and spirits registered growth across markets.
The firm’s cash and cash equivalents of Sh12.7 billion increased by Sh1.9 billion, driven by revenue growth and lower cost of debt. The total debt (including overdraft) reduced by Sh8.3 billion, contributing to lower finance costs.
“The business delivered a strong set of results marked by topline growth and double-digit profit expansion. All our markets recorded growth, fortifying our business position across the region,’’ EABL Group MD and CEO, Jane Karuku said.
She added that they remained focused on executing strategy, setting the right foundation for the results achieved and for sustainable long-term growth.
“We continue to invest in our brands, so they remain relevant for today’s consumers, and to broaden our portfolio to cater to a greater variety of occasions.”
The Kenyan market reported a growth of nine per cent, both reported and organic, while Uganda and Tanzania registered six and nine per cent growth, respectively.
