East African Breweries PLC (EABL) has reported a growth of 131 percent on profit after tax to Ksh8.7 billion, primarily driven by the higher net sales and the re-opening of bars in Kenya in the second quarter. This is the best interim profit after tax in the last five years.
The company recorded Ksh54.9 billion in net sales for the half-year ended December 31, 2021, representing a 23 percent growth compared to the same period last year.
“Volumes grew strongly at 23 percent, driven by investment behind brands and innovation in the route to market in response to consumer behaviour shifts. Additionally, the continued investment in capacity of Ksh6.2 billion enabled EABL to rapidly respond to the increased consumer demand, The company said in a statement.
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The Kenyan subsidiary of the group recorded a 27 percent increase in net sales primarily due to accelerated strategic investment behind brands and the re-opening of bars in the second quarter further improved the net sales growth.
In Uganda, net sales grew 18 percent driven by the market’s agile response to the shifting consumer trends as well as strategic pricing decisions. Uganda’s innovative channel delivery model ensured outstanding last-mile success, guaranteeing growth.
In Tanzania, net sales grew 15 percent, with beer and spirits registering double-digit growth momentum continued through increased strategic investment behind brands and innovations.
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“During this pandemic, our strategic clarity enabled us to maintain focus on brand-building, active portfolio management, consumer-led innovation, and digital transformation, all executed through extra-ordinary efforts and resilience of our people,” said EABL Managing Director Jane Karuku.
“We continue to focus on Spirit of Progress, our 10-year sustainability programme. This is a three-pronged agenda aimed at promoting positive drinking, championing diversity and inclusion and pioneering grain to glass sustainability across our value chain.”
Looking into the future, Mrs Karuku added: “The trading environment remains uncertain with the lingering socio-economic impact of the pandemic, excise tax volatility, and the upcoming electioneering period in Kenya. However, we are cautiously optimistic that the regional economies will continue on the recovery path, sustaining growth momentum across East Africa.”
The Board has recommended an interim dividend of Ksh3.75 per share.
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