NAIROBI, Kenya, Jul 28- East African Breweries Limited (EABL) has 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.
“This has been an exciting year on many fronts and we are pleased to have delivered solid results. We still have a host of opportunities to unlock, not least in tapping an increasingly discerning customer base,” EABL’s Group outgoing MD Charles Ireland said in a statement on Thursday.
However the growth was also largely slowed by the decline of South Sudan business and negative foreign exchange impact, group net sales remained flat.
Most of EABL’s product segments experienced growth emerging beer by 112 percent, buoyed by Senator in Kenya, Ngule in Uganda and Pilsner in Tanzania with mainstream spirits growing by 22 percent.
Minimal growth was experience in premium beer, 2 percent and Ready-to-Drink (RTD) by 3 percent.
However, mainstream beer was down 6 percent while premium and emerging spirits were down nine per cent and two per cent, respectively.
“I am confident that the investment we have made in our systems, brands and people will help us to take full advantage of these opportunities. We will continue to focus on innovation and prudent cost management and remain flexible to anticipate and respond to external factors in the region,” Ireland added.
Cash flow from operating activities increased by 32 percent to Sh27.9 billion as a result of better than forecasted Senator volume coupled with efficient management of working capital.
Net capital expenditure spend for the period was Sh5 billion, covering investment to increase capacity, improve efficiency and safety as well as into returnables in order to meet increased demand for brands across the region. Total group net borrowings decreased by 17 per cent to Sh25 billion.
The Board of Directors has recommended a final dividend of Sh5.50 per share. The 2016 annual dividend remains unchanged from last year at Sh7.50 per share.