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Kenya

EABL 2018 profit drops by 15pc to Sh7.3b

EABL Chief Executive Andrew Cowan has attributed the decline to a one-off tax provision

 

NAIROBI, Kenya, Jul 27 – East Africa Breweries Limited has posted a profit of Sh7.3 billion for the year ending June 2018, a 15 percent decline from the Sh8.5 billion the brewer made in the previous year.

EABL Chief Executive Andrew Cowan has attributed the decline to a one-off tax provision and a 13 percent decline in the growth of Senator Keg owing to uncertainty in the first half of 2018.

Revenue was however 5pc up as performance significantly improved in the second half with net sales increasing by 10 percent to close the year at Sh73.5 billion.

The spirits net sales increased 8pc in the full year, driven by an improved performance of the mainstream spirits portfolio (up 23pc) while beer increased 4pc, fueled by growth of bottled beer and partially offset by decline of Senator keg sales.

“We have spent Sh13 billion in capital expenditure with Sh7.8 billion of that being spent on the Kisumu brewery. All these efforts have supported the results with Kenya, Uganda and Tanzania growing at 1 percent, 4 percent and 41 percent respectively,” said Cowan.

The Board of Directors has recommended a final dividend of Sh5.50 per share bringing the total dividend in 2018 to Sh7.50 per share.

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