EABL half year net earnings drop to Sh5.5 billion

East African Breweries limited (EABL) recorded a 27.7 per cent net profit drop in the half year ended December on the absence of the Sh2.2 billion gain it made from sale of Central Glass Industries in the same period last year.

The firm’s net profit stood at Sh5.5 billion in the review period compared to Sh7.7 billion the year before.

Net earnings from normal operations improved slightly to Sh5.5 billion from Sh5.4 billion, underlining the impact of the subsidiary’s sale in boosting the previous period’s bottom-line.

EABL’s sales also fell 6.2 per cent to Sh35.1 billion in what the brewer blamed on increased taxation of its products and negative foreign exchange movements in the regional markets.

“On a like-for-like basis net sales were flat but adverse foreign exchange movements and impact of excise tax increase resulted in a six per cent decline in reported sales,” the company said in a statement.

The NSE-listed brewer declared an interim dividend of Sh2 per share, payable on or about April 21 to shareholders on record as of March 31.

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