EABL posts 67pc growth in after tax profit to Sh7.7 bn

Regional beer maker East African Breweries Limited (EABL) has reported that its net profit for the six months to December has grown by over two thirds to Sh7.7 billion.

The firm, which is 50.02 per cent owned by multinational brewer Diageo, also said that its net sales for the period jumped eight per cent to Sh37.5 billion driven by a double digit growth in five out of eight product segments.

EABL’s reported a 16 per growth in profit after tax from continuing operations, highlighting the impact the Sh2.2 billion gain it booked from the sale of Central Glass Industries (CGI) had on the beer maker’s earnings.

“The total profit for the half grew by 67 per cent…inclusive of the contribution from the disposal of CGI, the glass making subsidiary and netting off nearly Sh1 billion negative impact from South Sudanese pound currency devaluation,” the brewer said in a statement.

Sales of mainstream beer, including Tusker, dropped by 10 per cent while mainstream spirits like Kenya Cane, Uganda Waragi and Kane Extra reported growth of 14 per cent.

Reserve spirit brands like Ciroc and Singleton posted a strong performance of 45 per cent while emerging beers like Senator Keg recorded a 106 per cent growth in sales.

“We have delivered solid performance despite the challenging economic environment in East Africa,” EABL’s group managing director, Charles Ireland, said in a statement today.

“We have seen business volatility and foreign currency challenges across the region. However, we have a clear strategy and will continue to build on new opportunities to drive our business growth.”

The EABL board recommended payment of an interim dividend of Sh2.00 per share up from Sh1.50 paid out during a similar period last year.