NAIROBI, Kenya, Jan 25 – East African Breweries Limited PLC (EABL) net profit in the half-year year ending December last year dropped by 22 percent to Sh6.8 billion compared to a similar period in 2022, weighed down by high inflation, currency depreciation, and rising finance costs.
For example, the devaluation of local currency caused a forex loss of Sh2.3 billion, an increase of Sh2.1 billion in the review period.
‘’However, our bottom line has been impacted by increased costs of inputs, currency devaluation and rising interest rates,” EABL Group Managing Director and CEO Jane Karuku said.
High sales in Kenya (10 percent), Uganda (31 percent), and Tanzania (9 percent), however, boosted net sales to Sh66.5 billion in the period, representing a 16 percent growth.
Additionally, the beer and spirits categories grew by 18 percent and 13 percent, respectively.
Likewise, spending on advertising and promotions rose by 16.5 percent to Sh6.1 billion.
Already, the brewer’s Sh1.2 billion microbrewery in Kenya started producing brands of products during the half-year period.
“Our priorities for the second half are clear: we will remain consumer-centric and execute brilliantly to keep up with the dynamism in the market, drive cost efficiencies to grow margins and invest smartly in our brands and business. Further, we will continue to deliver against our ESG commitments, whilst driving high performance culture and engagement of our people.”
Thus, the EABL Board has recommended an interim dividend of Sh1 per share to be paid on or about April 26, 2024.
