Commerce

EABL posts Sh9b in H1 profits on higher sales

Friday, January 28th, 2022 08:44 | By
East African Breweries LTD
EABL

East African Breweries (EABL) posted a net profit of Sh8.7 billion in its half year results ending December 31, 2021.

The brewer who operates factories in Kenya, Uganda and Tanzania attributed the 131 per cent net profit jump to margin expansion, prudent cost management and volume recovery in Kenya.

During the period under review, net sales increased by 23 per cent to Sh54.9 billion while volumes increased by 23 per cent as a Sh6.2 billion investment in brands and innovation started bearing fruits.

“Consequently, the group’s profit after tax grew 131 per cent to Sh8.7 billion, primarily driven by the higher net sales, margin expansion, robust cost management and the re-opening of bars in Kenya in the second quarter,” said managing director Jane Karuku.

High net sales

The Kenyan market returned the highest net sales which increased by 27 per cent leveraging on accelerated strategic investment behind brands and channels with further improvement recorded in the second quarter after bars were reopening.

Uganda and Tanzania recorded 18 per cent and 15 per cent increment in net sales respectively through agile response to the shifting consumer trends and strategic pricing decisions. T

he board has recommended an interim dividend of Sh3.75 per share, reflecting EABL’s strong performance and confidence in the longterm growth and sustainability of the business.

“We are cautiously optimistic that the regional economies will continue on the recovery path,”she said. The group navigated the pandemic through strategic clarity, maintaining focus on brandbuilding and consumer-led innovation.

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