NAIROBI, Kenya, Aug 26 – East African Breweries Limited (EABL) has posted a Sh12.5 billion pre-tax profit for the financial year ended June 30, a 10 percent increase over the Sh11.5 billion recorded in a similar period last year.
The net turnover went up 10 percent to Sh37.9 billion compared to Sh34.4 billion in 2008-2009 financial year.
The brewer’s Board of Directors has declared a full year dividend of Sh8.75 per share up from Sh8.05 the previous year, signifying a nine percent increase.
“The business performed well with the growth of our anchor beer brands like Tusker and Guinness, and we experienced an upturn in our sprits performance in the year. We continue to make significant investments in brand building activities regionally that consistently deliver good short and long term returns. That notwithstanding we continue to face and address cost management pressures regionally,” said Seni Adetu, the Group Managing Director.
In May, the company introduced Blossom Hill, an internationally acclaimed wine brand, into the Kenyan market. EABL expects to quickly gain a sizeable market presence in the fastest growing category within the alcoholic beverages segment.
In Uganda, Uganda Breweries Limited (UBL) continues to make waves, after winning two PR awards from the Public Relations Association of Uganda. In April, the company won three medals in the Monde Selection 2010; Bell Lager and Waragi were awarded Gold while Senator got a silver medal.
UBL also had successful launches of new brands into the Ugandan market; Serengeti Lager, and Alvaro Passion.
EABL is in the final stages of acquiring a major interest in Serengeti Breweries Limited with the Tanzanian Fair Competition Commission (FCC) approving the acquisition.
However, there are still some key steps to be made before the acquisition is complete. Mr Adetu said EABL is committed to strengthening its footprint in Tanzania through the SBL partnership.
Regionally, the brewer made investments of over Sh3.2 billion in additional capital investments to improve capacity and quality at its plants in Nairobi and Kampala.
Mr Adetu said a new Senator Keg line, that fills 480 barrels per hour, is fully operational in Kenya. This will increase Senator’s market penetration, which is targeted at the lower end of the market that has fallen prey to the illicit brews.
In October, a new packaging line with a capacity of 50,000 bottles per hour will be commissioned at the Uganda Breweries Limited (UBL) Plant in Kampala, Uganda.
The EABL Group consists of Kenya Breweries Limited, Central Glass Industries Limited, Uganda Breweries Limited, International Distillers Uganda Limited, East African Maltings Limited, UDV (Kenya) Limited and EABL International Limited.