Home ECONOMY EABL HY Profits up 9% to Hit KSh7.2 Billion

EABL HY Profits up 9% to Hit KSh7.2 Billion

by biasharadigest

East African Breweries Limited (EABL) profits after tax grew by 9%t to KSh7.2 billion for the half year ended 31st December 2019. The pretax profit grew by the same margin to KSh10.6 billion.

EABL’s Group Managing Director, Andrew Cowan, attributes the impressive performance to increased revenues, strong innovation, and improved cost-efficiency.

For instance, there was a 10% rise in net sales to KSh45.85 billion, driven by increased sales of spirits and senator keg beer, up from KSh41.57 billion in 2018.

In Kenya, senator keg was outstanding growing by a fifth with the KSh22 billion Kisumu plant driving growth.

Net sales in EABL’s largest market, Kenya, grew by 8%, with beer and spirits growing by 6% and 11%, respectively.

Read Also: EABL Relief as Government Grants Tax Exemption on Select Beer

Cowan added that EABL leveraged on increased investment to expand, with the brewer’s capital expenditures standing at KSh4.4 billion, thus improving production capacity.

Moreover, new brands such as Hop House 13 Lager, Guinness Smooth, Black & White whisky and Triple Ace vodka contributed 28% of the net sales.

In a bid to facilitate sustainable growth, EABL committed KSh22 billion across East Africa to leverage renewable energy in biomass, solar, as well as water recovery and treatment. Cowan said these efforts will reduce EABL’s carbon emissions by 42000 tonnes, save over a billion cubic liters of water annually, and produce up to 10% of power needs.

EABL announced an interim dividend of KSh3 per share for the half year period, representing a 20% increase.

However, Cowan faulted the new excise duty regime saying it pushed bottled beer sales down by 1%.

Related:

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