NAIROBI, Kenya, Jan 27 – East African Breweries PLC (EABL) has reported a 131 per cent jump in net profits in its half year results hitting a five year high, with the reopening of bars in the second quarter of 2021 playing a major role.
The firm reported a Sh8.7billion net profit in the six months to December 2021 compared to Sh3.79 billion in the same period in 2020
EABL attributed the growth 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,” EABL Managing Director Jane Karuku said.
Volumes grew by 23 per cent, while net sales jumped to Sh54.9 billion for the half-year ended 31 December 2021, representing a 23 per cent growth compared to the same period last year.
In Uganda, net sales grew 18 per cent driven by the market’s agile response to the shifting consumer trends as well as strategic pricing decisions while in Tanzania they grew 15 per cent, with beer and spirits registering double-digit growth.
“Our regional effort to support the hospitality sector through the pandemic has gathered pace, with 60 per cent of the Raise the Bar fund (Sh570 million) already spent. This fund is enabling physical and digital support to bars welcoming customers back after lockdowns,” said Karuku.
Looking into the future, Karuku noted that the 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.”
The Board recommended an interim dividend of Sh3.75 per share.
