Africa: East African Breweries records 57% growth in net earnings for financial year to June 30

Regional beer maker East African Breweries Ltd (EABL) recorded 57 per cent growth in net earnings for the 12 months’ period to June 30 buoyed by strong performances of its regional subsidiaries in Tanzania and Uganda, The East African reported on July 30.

The Nairobi Securities Exchange (NSE) listed brewer made Ksh11.5 billion ($115 million) in net profit compared to last year’s Ksh7.3 billion ($73 million).

The strong performance was underpinned by the recovery in the consumption of both beer and spirits across the region.

According to the firm’s audited financial statements all regional markets registered increased sales, pushing the firm’s total revenues by 12 per cent to Ksh82.54 billion ($825.4 million) from Ksh73.45 billion ($734.5 million).

The brewer’s sales revenues in Uganda and Tanzania grew by eight per cent and 20 per cent respectively while that in Kenya grew by 13 per cent.

In terms of the overall profitability, Ugandan and Tanzanian subsidiaries contributed 15 per cent and 12 per cent respectively to EABL’s bottom-line even though a huge share of the profit (73 per cent) was realized from the Kenyan operations where sales of low-end lager Senator Keg brand and spirits attracted double digit growth.

The firm declared a total dividend of Ksh8.50 ($0.08) per share for the shareholders in the wake of increased earnings compared from last year’s Ksh7.50 ($0.07) per share.

During the year, EABL spend Ksh 11.7 billion ($117 million) in capital expenditure across the East African region with plans to put in more investments to boost capacity, improve production efficiencies and minimise negative impact on the environment.

Its stock on the NSE increased two per cent on Monday, July 29 to Ksh207.75 ($2.07) per share from the Friday, July 26 price of Ksh203.25 ($2.03) per share.

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