EABL revenue up 15% to Ksh.86 billion for year ending June
East African Breweries Limited (EABL) recorded a 15 percent growth in revenue to Ksh.86 billion for the year ended June 2021.
The company’s profit before tax went up two percent to Ksh.10.9 billion.
The slower profit growth rate was driven by the impact of cost inflation, adverse foreign exchange impact and tax charges.
Its profit after tax for the period under review declined one percent to reach Ksh.7 billion from Ksh.6.96 billion recorded in the previous year.
A combination of higher costs, adverse foreign exchange and increased tax charges have nevertheless muted the effect of improved sales for the company following initial COVID-19 disruptions at the end of its last financial cycle.
For instance, EABL cost of sales in the year rose by a higher 15.8 percent to Ksh.48.5 billion from Ksh.41.9 billion previously.
- EABL to acquire 30 p.c shareholding in Serengeti breweries
- EABL unveils new logo, changes office location
- KBL steps up fight against illicit brew with ksh.76 million promotion
At the same time, EABL income tax charge has risen to Ksh.3.9 billion from Ksh.3.6 billion last year on the reversal of tax reliefs at the end of the 2020 calendar year.
“Through Fiscal 2021, the pandemic continued to impact the business negatively across East Africa due to the restrictions in Kenya and Uganda and the general decline in disposable incomes in the region. We responded to the new realities by continuing to invest behind the brands, expanding capacity and sustaining productivity initiatives to manage our cost base to ensure we emerge stronger,” said EABL Group Managing Director Jane Karuku.
“We are cognizant of the fact that the uncertainty posed by the pandemic will continue. However, we are confident that our strategy is working and will continue to focus on business recovery to grow top line and recover margin.”
EABL saw its biggest rebound in sales in Uganda where revenues were 33 percent higher driven primarily by beer and spirits sales.
Tanzania revenues were meanwhile up by 15 percent while Kenyan sales were up by 10 percent over the year after registering a 45 percent hike in sales between January and June this year.
During the year, EABL invested Ksh.7.8 billion to support its new growth channels.
EABL has, however, resolved not issue a final dividend because of the continued uncertainty in the external environment due to COVID-19 related restrictions.
The management said they will focus on business recovery to grow top line and recover margin.