Asset disposal lifts EABL dividend payout to Sh12 per share

October 27, 2016
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The dividend is inclusive of a special dividend of Sh6.50 paid from additional income EABL received from the Sale of its subsidiary, Central Glass Industries (CGI) Limited/FILE
The dividend is inclusive of a special dividend of Sh6.50 paid from additional income EABL received from the Sale of its subsidiary, Central Glass Industries (CGI) Limited/FILE

, NAIROBI, Kenya, Oct 27 – East African Breweries Limited (EABL) shareholders will get a dividend of Sh12 per share, a 60 per cent increase compared to the Sh7.50 shared in 2015.

The dividend is inclusive of a special dividend of Sh6.50 paid from additional income EABL received from the Sale of its subsidiary, Central Glass Industries (CGI) Limited.

The firm will spend Sh7 billion for this issue, with Diageo & Associate Companies taking home nearly Sh3.5B as the majority shareholder.

EABL Chairman, Charles Muchene said the Sale of its subsidiary, Central Glass Industries (CGI) Limited at Sh4.5 billion was a result of a thorough strategic review, following the decision to exit the glass business in order to focus on the company’s core business and unlock additional value to its shareholders.

Muchene disclosed that the Board is also encouraged by the strong financial outlook for the first half-year, ending December 31st 2016, buoyed by a robust performance in premium beers and spirits, as well as prudent cost management within the Group, during the period under review.

To spur further growth in both beer and spirits, EABL Managing Director, Andrew Cowan explained that new innovations will play a key role in driving sales in both first and second half of the year.

“Innovation forms a crucial part in our growth strategy. It was a key pillar of growth in 2015/2016 delivering double net sales value contribution to the overall business and, it enables us offer consumers choice and quality for every occasion and price point,” noted Cowan.

The firm has launched several successful innovations such as Tusker Premium Cider, Smirnoff Electric Ginsen, Tusker Gold in support of Kenya’s Olympic team.

In Uganda, the firm launched Ngule, while Ciroc Ultra-Premium Vodka was launched into the Tanzanian market.

Other successful innovations this year are Kenya Cane Coconut flavour and Chrome Vodka.

EABL recorded a 7 percent profit growth for the financial year ended 30 June 2016 to Sh10.3 billion compared to Sh9.5 billion in the previous financial period.

EABL’s performance was largely driven by recovery of Senator in Kenya and innovation across all markets.

However, the growth was also largely slowed by the decline of South Sudan business and negative foreign exchange impact, group net sales remained flat.

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