Companies

EABL net profit up 5pc to Sh6.85bn

EABL

A quality assurance official inspect a beer at EABL plant. The firm's after tax profit for the year through June grew 5 per cent to Sh6.85 billion. FILE

East African Breweries Ltd's (EABL) after tax profit for the full-year ended June grew 5 per cent to Sh6.85 billion riding on improved performance by most of its products.

Announcing the results on Thursday, group managing director Charles Ireland said profitability was weighed down by the introduction of new taxes on senator keg and political instability in South Sudan where it opened a depot in in the first quarter.

"We are generally happy with the results but we believe we could have done better. All our products posted positive growth except senator keg," said Mr Ireland. Senator sales dropped 75 per cent during the review period.

READ: 2,000 outlets of EABL’s low-cost Senator beer close down

READ: EABL taps spirits to recoup revenue lost in Keg price rise

Sales went up 4 per cent to Sh61.2 billion during the year.

Kenya remained the group's biggest market contributing 64 per cent of the total sales. Uganda and Tanzania came second and third respectively at 18 per cent and 11 per cent. Other markets in which EABL is present across the region contributed 7 per cent.

The directors have proposed a final dividend of Sh4, bringing the total pay out to Sh5.50 per share. An interim dividend of Sh1.50 was paid after the half year financial results.