Africa: East African Breweries to expand on Zambia and Ethiopia markets
After recording a pre-tax profit of Ksh5.3 billion ($75.7 million) in its half year for the period ended December 2006, the leading regional brewer, East African Breweries Ltd (EABL), is now targeting markets in Zambia and Ethiopia, The East African reported March 19.
EABL managing director Gerald Mahinda said the firm was now “setting its sights on markets beyond East Africa.”
“EABL has undergone tremendous growth in the past five years with its profits and return to shareholders rising steadily in the same period,” Mr Mahinda told a breakfast meeting in Dar es Salaam on March 12.
He added that the group’s profits rose by Ksh0.6 billion ($8.6 million) to Ksh4.8 billion ($68.5 million), while gross turnover hit Ksh12.7 billion ($181.4 million). He said this trend reflected an increase in turnover by 14 per cent compared with the same period last year.
Mr Mahinda attributed this to heavy investment by the group in various areas including strategic marketing campaigns and brand promotion.
“The group’s portfolio of innovative and popular brands continues to grow and strengthen in market share. We will maintain a strong focus in all areas of our business, our people and brands,” said Mr Mahinda.
He added that community investment through the EABL Foundation and Responsible Drinking Campaign have also achieved tremendous success. Projects under the foundation have touched the lives of over 200,000 people in East Africa in the past year.
EABL is cross-listed on the Dar es Salaam Stock Exchange (DSE), the Nairobi Stock Exchange (NSE) and the Uganda Securities Exchange (USE).
The group’s six subsidiary firms are Kenya Breweries, Uganda Breweries, International Distilleries Uganda, East Africa Maltings, Central Glass Industries and UDV Kenya.
EABL is East Africa’s leading branded alcohol beverage business and has an outstanding collection of beer and spirits brands. With breweries, distilleries, support industries and a distribution network across the region, the group’s diversity is an important factor in delivering the highest quality brands to East African consumers and long-term value to investors. EABL has an annual turnover of Ksh30 billion ($428.5 million) and employs more than 1,000 people across East Africa.
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