Charles Ireland, EABL’s chief executive. PHOTO | FILE
What you need to know:
East African Breweries earned a net profit of Sh4.6 billion in the period, Sh500 million more than the first half of last year.
East African Breweries (EABL) announced an 11 per cent net profit growth in the half-year ended December as sales rose faster than costs, with shareholders set to earn an interim dividend of Sh1.5 per share.
The beer maker earned a net profit of Sh4.6 billion in the period, Sh500 million more than the first half of last year.
This came as sales increased 9.1 per cent to Sh34.7 billion, driven by fast growth of the flagship Tusker brand. Tanzania’s turnover jumped 17 per cent while international exports more than doubled.
Sales in Uganda rose seven per cent while Kenya, the largest market, posted the slowest turnover growth at three per cent.
The cost of goods sold jumped 9.4 per cent to Sh17.6 billion but the increase was lower in absolute terms compared to sales growth. Administrative expenses declined 2.4 per cent to Sh4.3 billion, reflecting the firm’s cost savings from a mix of retrenchments and realignment of its manufacturing and distribution network.
“Our… focus on cost and increased efficiencies has paid off during this period,” said Charles Ireland, EABL’s chief executive. EABL last year laid off 100 employees including managers.
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