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EABL pays interim dividend as profit rises to Sh8.1bn
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 reported a 19.6 percent increase in net profit to Sh8.1 billion for the six months ended December 2024 on higher sales and reduced loan repayment costs, helping the firm to declare an interim dividend.
The net profit grew from Sh6.78 billion a year earlier as net revenue rose to Sh67.92 billion from Sh66.54 billion and net finance costs reduced by 14.3 percent to Sh3.44 billion.
The reduced spending on servicing loans was helped by the appreciation of the shilling against the dollar as well as EABL’s move to cut the stock of borrowings by Sh4.9 billion to close December last year at Sh41.87 billion.
EABL has been cutting down its debt, taking the figure to Sh49.67 billion at the end of June 2024, from Sh60.67 billion in June 2023, with the move cushioning it from the effect of elevated interest rates.
Last year, the shilling gained by nearly a fifth against the dollar to stabilise at about 129.29 units, compared to the previous year when it shed a quarter of its value to exchange above 161 units.
The strengthened shilling saw EABL book a Sh1.17 billion foreign exchange gain compared to the previous half year when it booked a foreign exchange loss of Sh2.3 billion.
“During the period under review, we observed easing inflation, declining interest rates and currency appreciation in certain markets, which fostered improved business conditions. However, challenges persisted, including reduced disposable income, and rising Input costs,” said Martin Oduor-Otieno, the chairman at EABL.
The board has recommended payment of an interim dividend of Sh2.50 per share, an increase from the Sh1 that was paid in a similar period last year when the brewer followed up with a Sh6 final dividend.
The interim dividend, amounting to Sh1.98 billion, will be paid on or about April 30 to shareholders on EABL register at the close of business on February 21, 2025.
“Our sustained investment in our iconic portfolio, and elevated commercial execution helped capture consumer opportunities. Our accelerated productivity agenda further cushioned the impact of input cost inflation,” said Jane Karuku, chief executive at EABL.
EABL’s subsidiary in the country, Kenya Breweries Limited, slashed the prices of its mainstream spirits portfolio in November last year in bid to accommodate more customers and stimulate sales. The price cuts were on both 750 mililitres (ml) and 250ml bottles of Chrome Gin and Chrome Vodka.