Kenya & Uganda: East African Breweries Limited registers after tax profit of Sh6 billion for 2005

The East African Breweries Limited (EABL), the parent company of Kenya Breweries, Uganda Breweries, International Distillers Uganda, Kenya Maltings, Central Glass Industries and UDV Kenya, will pay its shareholders a total dividend of Sh4.5 per share for the 2004/05 financial year, according to AllAfrica report.

Speaking during EABL's Annual General Meeting yesterday, the chairman, Mr Jeremiah Kiereini, said the board of directors had approved a final dividend of Sh3, which together with the interim dividend of Sh1.50 already paid, represents an increase of 29 % over last year.

EABL, the parent company of Kenya Breweries, Uganda Breweries, International Distillers Uganda, Kenya Maltings, Central Glass Industries and UDV Kenya, reported a post-tax profit of Sh6 billion for the financial year ending 30th June 2005.The company emerged as the second most profitable company in Kenya, behind mobile phone Company, Safaricom.

"EABL continues to invest heavily in the infrastructure of its breweries. Recent upgrades at the Kenya Breweries have included refurbishment of the brew house and an improved effluent treatment plant.

Uganda Breweries, now has a new state of the art effluent treatment plant," said Kiereini.In the 2004/05 financial year, EABL invested over Sh3.5 billion to boost its operations.

The main capital investments included a brewer house upgrade (Sh600 million) and a new spirits line (Sh500 million)."This year, the company's corporate social responsibility budget went up by 50 per cent," said Kiereini.

Meanwhile, EABL has appointed two new non-executive directors to its Board.Dr Nick Blazquez, the Managing Director of Diageo Africa, will become the deputy chairman, replacing Mr David Hampshire, who retired in August.

Diageo Group, the manufacturer of Guinness brand holds 49 % of EABL, collectively.

Mr Wilfred Kiboro, the Chief Executive Officer of Nation Media Group, joins the board, while Dr David Kalema and Evanson Mwaniki were also re-elected. EABL attributes its growth in earnings to souring beer volumes, which grew by 15 % to record 2.63 million hacter litres in 2004.

The growth was underpinned by economic growth in Kenya, as well as product innovation.A new brand, Senator, was launched this year to address the lower market segment, which currently is in the hands informal brewers.

Taxes paid to various revenue authorities across East Africa amounted to Sh15.5 billion this year, compared to Sh13.5 paid in the previous year. Taxes represent 53 % of EABL's gross revenue.

Earlier this year, EABL achieved another financial milestone by reaching one billion US dollars in market capitalisation, which is a representation of the total market value of a company.The company was also listed at the Dares-Salaam Stock Exchange, a move that made the company's shares to available for trading in the three East African countries.

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