East African Breweries Limited (EABL) has announced a pre-tax profit of Ksh10.6 billion during the half-year ending 31 December 2019, representing a 9% increase compared to the same period last year.
Profit after tax also grew at the same rate, reaching Ksh7.2 billion during the period under review. Net sales were up 10 percent to Ksh45.9 billion, driven by higher volumes, up 5 percent across the Group and categories, and better price mix across all brands.
East Africa’s largest manufacturing company leveraged increased investment and operational efficiencies across markets and segments to expand, despite increases in alcoholic beverage taxes.
Net sales up 10% to Kshs 45.9 billion
• Profit after tax up by 9% to Kshs7.2 billion
• Strong cash conversion of 102% and Kshs4.4 billion capital expenditure
• Proposed interim dividend at Kshs 3 per share as of January 30, 2020
In 2018, EABL net profit fell by 15 percent to Ksh7.3 billion. It reported its full-year financial results for the period ended June 2018 posting a 4.6 per cent growth in revenue to Ksh 73.5 billion.
Net sales for the period grew by 10% on the back of strong growth in the spirits segment of the business which was up 23% while beer increased 4% despite a decline in Senator keg sales.
Cost of sales was up by 5 percent to Ksh41.1 billion while Profit after tax declined by 15% due to a one-off tax provisions. Profit before tax fell by 12% to Sh 11.7 Billion. Total operating costs, on the other hand grew by 16% to Ksh20.7 billion.