East African Breweries Limited PLC (EABL) profit for the half-year period ended December 31, 2023 has shrunk to Ksh6.8 billion.
This is a 22 per cent drop compared to the Ksh8.7 billion it posted for the half-year period ended December 31 2022.
EABL has attributed the decline in profit for the period to macroeconomic-driven cost inflation and rising finance costs.
Further, the Nairobi Securities Exchange (NSE)-listed brewer noted that the devaluation of the local currency has resulted in a forex loss of Ksh2.3 billion, a Ksh2.1 billion jump compared to what it recorded in a similar period a year prior.
“We have achieved a resilient set of results in the half-year period. Our great brand building, brilliant commercial execution, as well as consumer insight-led innovation, has allowed us to continue our revenue growth momentum. However, our bottom line has been impacted by increased costs of inputs, currency devaluation and rising interest rates,” said EABL Group Managing Director (MD) and Chief Executive Officer (CEO), Jane Karuku.
“Following the commissioning of our microbrewery, we have accelerated the launch of exciting beer and cider propositions. We continued to deliver on our Environmental, Social and Governance (ESG) strategy, yielding positive results around water efficiency and carbon footprint,” added Karuku.
Net sales for the period jumped 16 per cent to Ksh66.5 billion compared to Ksh57.2 billion posted in H2 of 2022.
EABL Group’s volumes increased 2 per cent, lifted by resilient consumer demand as markets leveraged a strong and expanding portfolio with brilliant commercial execution.
The Group reported net sales growth across the three markets Kenya at 10 per cent, Uganda at 31 per cent and Tanzania at 9 per cent.
Additionally, beer and spirits categories grew at 18 per cent and 13 per cent respectively.
“Our priorities for the second half are clear: we will remain consumer-centric and execute brilliantly to keep up with the dynamism in the market, drive cost efficiencies to grow margins and invest smartly in our brands and business,” noted the Brewer’s MD.
“Further, we will continue to deliver against our ESG commitments, whilst driving high-performance culture and engagement of our people.”
The Board of EABL has recommended an interim dividend of Ksh1 per share to be paid on or about April 26, 2024.