A section of an EABL plant. East African Breweries Limited profits dropped to Sh3.755 billion for the six months to December 2012 compared to Sh4.389 billion during similar period in 2011. Photo/FILE
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The company on Friday said that its profits dropped to Sh3.755 billion for the six months to December 2012 compared to Sh4.389 billion during similar period in 2011.
East African Breweries Limited (EABL) has posted a 14.45 per cent drop in net income with a rise in revenues for the half year ended December last year.
The company on Friday said that its profits dropped to Sh3.755 billion for the six months to December 2012 compared to Sh4.389 billion during similar period in 2011.
EABL’s revenues rose by 10.28 per cent to Sh30.633 billion from Sh27.777 billion on increased sales of beer and spirits.
“Net revenue in Kenya, our largest market, grew by 12 per cent due to strong performance across our beer portfolio and premium spirits,” said EABL in a statement.
The beer maker however said that the consumer economy in Uganda was not as robust resulting in a marginal three per cent growth in net revenue adding that its subsidiary in Tanzania, Serengeti Breweries Limited gained market share with a 16 per cent growth in revenue.
“Across the region, our total beer portfolio grew revenue by 11 per cent, while spirits grew by 9 per cent,” said the company in the statement which also noted a 45 per cent net revenue growth in the spirit portfolio.
The drop in profits was attributed to increased finance costs related to the acquisition of Serengeti Breweries in Tanzania and an increase in operating costs.
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