East African Breweries PLC (EABL) has delivered its strongest financial performance in recent years, posting a 49 percent jump in net earnings to KSh18.2 billion for the period ended 30 June 2026.

In a market update on Thursday, EABL said its record earnings were propelled by broad-based revenue growth, aggressive debt cuts and easing trade conditions across East Africa.

The Nairobi Securities Exchange-listed brewer, which is currently navigating a historic change of ownership following parent firm, Diageo’s agreement to sell its controlling stake to Japan’s Asahi Group Holdings, reported net sales growth of 13 percent to KSh146 billion. 

This marks the first time the cross-listed company has crossed the $1 billion revenue milestone, underscoring the resilience of its portfolio in a challenging consumer environment.

Group CEO Jane Karuku attributed the strong performance to disciplined execution and strong momentum across both beer and spirits product categories. 

“All the countries came to the party,” Ms Karuku said, noting that Kenya, Uganda, and Tanzania all delivered robust growth, with Uganda and Tanzania posting even faster expansion of 16 percent and 44 percent, respectively. Kenya remains the group’s largest market, accounting for approximately 60 percent of its revenues.

EABL results align with parent company Diageo’s Africa performance snapshot, which showed organic net sales growth of 13.3 percent for the continent. 

Diageo highlighted EABL’s East Africa operations as a key driver, with double-digit growth in Uganda and Tanzania and mid-single-digit growth in Kenya, fuelled by strong demand for rum and beer.

Mainstream Spirits

A key engine of growth was the mainstream spirits category, which surged 30 percent year-on-year, driven largely by the popularity of Kenya Cane and its flavoured variants such as ginger, pineapple, and coconut. This category has become a staple in bars and entertainment venues, positioning EABL to capture value from the mass-market segment.

The company’s “new frontiers” business, which includes ready-to-drink cocktails and innovations such as Manyatta, also grew 26 percent, reflecting changing consumer tastes and EABL’s push into new drinking occasions.

Profitability was further enhanced by a sharp reduction in finance costs. EABL reduced its total debt by KSh4.8 billion during the financial year, capitalising on a lower interest rate environment across East Africa. 

This balance sheet strengthening allowed the company to absorb modest inflationary pressures that emerged towards the end of the trading period, largely due to higher energy and food costs.

Dividend and Share Price

The board has recommended a final dividend of KSh8.70 per share, bringing the total dividend payout for the year to KSh12.70. This represents a 59 percent increase in shareholder returns compared to the previous financial year. 

During the year, EABL’s share price increased by 43 percent to close at KSh269 as of 30 June 2026, reflecting strong market conviction in the business’s fundamentals amid the ongoing ownership transition.

EABL has also started reaping the benefits of reforms to Kenya’s excise tax regime, which industry players say have ended years of double taxation on alcoholic beverages. CEO Karuku noted that the stabilisation of the tax framework has encouraged higher consumption volumes.

However, the company continues to grapple with illicit alcohol consumption, which remains a significant headwind across the region. EABL has called for continued collaboration with governments and regulators to protect consumer choice and strengthen the fight against illicit alcohol.

Diageo Exit

The record FY2026 results come at a pivotal moment for EABL. In December, Diageo announced it had agreed to sell its 65 percent stake to Asahi Group Holdings for $2.3 billion as part of a broader global portfolio realignment. A Kenyan court in April dismissed a bid to block the sale, clearing the way for the transaction.

While Diageo’s exit ends decades of control by the London-based alcoholic beverages multinational, EABL’s operational trajectory remains anchored by its brands and deep regional footprint. Ms Karuku expressed confidence in the company’s ability to create long-term value, citing a diversified product portfolio and team as key strengths.

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