Recovery in beer and spirits sales lift EABL’s profit by 123 percent to Sh16 billion
The East African Breweries Limited (EABL) full-year net profit to June 2022 has surged by 123% to Kes.15.6 billion from Kes7 billion last year on account of the recovery in sales across the region.
The company, whose market scope spans the East Africa region, saw net sales grow by 27 percent to Kes109.4 billion from Kes86 billion last year primarily from higher revenue on beer and spirits sales.
Kenya remains the company’s most lucrative market accounting for 68 percent of sales with Uganda coming second at 18 percent and Tanzania 14 percent.
According to financial disclosures, net sales in the Kenyan market went up by 30 percent, primarily aided by a strong performance in beer and mainstream spirits which saw posted a 27 percent uptick.
EABL Uganda sales grew 24 percent on the back of brilliant brand building and the market’s excellent route to consumer execution, EABL Managing Director Jane Karuku said. The company’s Ugandan subsidiary also made market inroads through strategic pricing actions which accelerated margin expansion, she added.
“Although these results show we are now ahead of our pre-COVID growth trajectory, the challenging macro-economic environment, volatile tax and regulatory policy will continue to impact our business. Yet, our sharp focus on executing against our strategy, supported by an external focus, data-led insights and a culture of everyday efficiency will help us navigate current and future headwinds. As we celebrate 100 years of EABL’s operations in the region, we believe we are well positioned to deliver sustainable long-term growth,” noted Ms Karuku.
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Sales in Tanzania shot up by 21 percent on account of a broader brand portfolio and the growing prominence of the Serengeti trademark. Incremental growth.
Ms Karuku attributed the company’s excellent performance across all markets and categories to improved market conditions as outlets reopened, coupled with heightened marketing efforts and commercial activities.
Looking to the future, Ms Karuku seeks to enhance accountability and employee welfare in addition to smart investment and customer focus.
“We will continue focusing on our customers looking at the year ahead, investing smartly, keeping ourselves accountable through our society 2030 agenda and taking care of our employees,” said Ms Karuku.
On his part, the EABL Group Chairman Martin Oduor had this to say about his company’s success, “our sharp focus on executing against our strategy, supported by an external focus, data-led insights and a culture of everyday efficiency I believe has helped us navigate current and future headwinds across the group.”
The board of EABL has declared a final dividend of Ksh.7.25 per share bringing the total dividend paid for the year to Kes11 per share.
