East African Breweries Ltd (EABL) has recorded a 131 percent high in its half-year net profits attributed to the reopening of the bars in the second quarter of 2021.
The firm reported an 8.7 billion shillings net profit in the six months to December 2021 as compared to Ksh.3.79 billion in the same period in 2020.
The growth has been attributed to higher net sales, margin expansion, robust cost management, and the re-opening of bars in Kenya in the second quarter.
“During this pandemic, our strategic clarity enabled us to maintain focus on brand-building, active portfolio management, consumer-led innovation, and digital transformation, all executed through extra-ordinary efforts and resilience of our people,” said EABL Managing Director Jane Karuku.
The reports show that volumes grew by 23 percent, while net sales jumped to Ksh.54.9 billion for the half-year ended December 31, 2021, representing a 23 percent growth compared to the same period last year.
Net sales in Uganda grew by 18 percent driven by the market’s fast response and adaptation to the shifting consumer trends as well as strategic pricing decisions.
In Tanzania on the other hand, the firm’s net sale grew by 15 percent, with beer and spirits registering double-digit growth.
“Our regional effort to support the hospitality sector through the pandemic has gathered pace, with 60 percent of the “Raise the Bar fund” (570 million shillings), already spent. This fund is enabling physical and digital support to bars welcoming customers back after lockdowns,” Stated Karuku.
Karuku further added that the future trading environment remains uncertain with the lingering socio-economic impact of the pandemic, excise tax volatility, and the upcoming electioneering period in Kenya.
“However, we are cautiously optimistic that the regional economies will continue on the recovery path, sustaining growth momentum across East Africa,” she Said.