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EABL brews Sh12bn profit, raises dividends
East Africa Breweries Limited (EABL) Group Chairman Martin Oduor-Otieno (left) and Group Managing Director and CEO Jane Karuku during the release of the half year financial results for the six months ended December 2024.
Photo credit: Francis Nderitu | Nation Media Group
East African Breweries Plc (EABL) has raised dividend for the third consecutive year after net profit for the trading period ended June 2025 grew by 12.2 percent to Sh12.19 billion on the back of increased sales, foreign exchange gains and lower finance costs.
The firm’s financial results published early Thursday showed net profit rose from the Sh10.87 billion booked in the prior year, helping the board to propose a final dividend of Sh5.50 per share.
This final dividend, which will be paid on or about October 28 to shareholders who will be in the company’s register as at September 16, will add to the Sh2.50 interim payout made last year.
The interim and final payout amounts to Sh8 per share, marking the third year running that EABL has increased its distribution to shareholders. The firm had paid out Sh7 in the prior year and Sh5.50 in 2023. The latest distribution is only surpassed by Sh11 per share made in 2022.
“The business continued to navigate external pressures, including proliferation of illicit alcohol, sustained input cost inflation and declining consumer spending driven by reduced disposable income,” EABL said in a commentary accompanying the financial results.
The latest dividend per share payout means EABL investors will receive Sh6.33 billion or 51.8 percent of the net profit compared with a distribution of Sh5.54 billion or 50.9 percent of net earnings in 2024.
Net sales for the period under review grew by 3.75 percent to Sh128.79 billion. However, the company was able to achieve double-digit growth in net profit thanks to the emergence from a Sh3.92 billion foreign exchange loss to a gain of Sh313 million and the cost of servicing loans reducing by 27.9 percent or Sh2.27 billion to Sh5.85 billion.
EABL noted that the foreign exchange gain came on the back of Kenyan shilling appreciating against major currencies, reversing the depreciation experienced in the prior year.
The drop in finance costs was driven by a decline in interest rates and a reduction in the brewer’s borrowings by Sh6.4 billion or 14.8 percent to Sh36.88 billion.
EABL’s financial results announcement comes a day after the government proposed new alcohol control policies that would ban sales in supermarkets, online platforms, in restaurants, and home deliveries, while raising the legal drinking age from 18 to 21.
The draft policy also seeks to restrict public consumption, tighten advertising regulations, limiting access to alcohol access to licensed outlets only.
