East African Breweries PLC (EABL) has reported Sh15.6billion in net profit for the full year ended 30 June 2022, a 124 per cent growth compared to Sh6.9billion posted in the same period last year.
The improved performance was attributed to increase in net revenue and effective cost management.
The firm’s net sales jumped to Sh109.4 billion, representing a 27 percent growth compared to the same period last year, as the business marks 100 years of operations in the region.
The Group’s net sales were boosted by double-digit growth across all its markets and categories owing to an improved operating environment as outlets reopened following the easing of Covid-19 restrictions.
“EABL has delivered another set of consistent strong results across key metrics. These results reflect the high-performance culture we have created across the business, the rigorous execution of our strategy, the strength of our portfolio across categories and our agility in responding to emerging trends and insights,” said EABL Group MD and CEO,Jane Karuku.
The firm delivered a strong beer performance, up 27 per cent, aided by the beer recovery in Kenya.
The Group’s spirits category was up 26 percent, boosted by a 27 per cent growth in mainstream spirits.
EABL’s largest market, Kenya, delivered 30 per cent net sales growth, mainly on the back of strong beer recovery and continued growth in spirits – fuelled by premium and upper mainstream segments.
In Uganda, net sales grew 24 per cent supported by the market’s excellent route to consumer execution and brilliant brand building.
Uganda also benefited from accelerated margin expansion through strategic pricing actions.
In Tanzania, net sales grew 21 per cent, driven by consistent growth of the Serengeti Trademark and an expanded brand portfolio.
Local production of spirits helped deliver further incremental growth, cementing the business as a total beverage alcohol player.
“Although these results show we are now ahead of our pre-Covid growth trajectory, the challenging macro-economic environment, volatile tax and regulatory policy will continue to impact our business. Yet, our sharp focus on executing against our strategy, supported by an external focus, data-led insights and a culture of everyday efficiency will help us navigate current and future headwinds,” said Karuku.
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EABL’s board has declared a final dividend of Sh7.25 per share adding to an interim dividend of Sh3.75 as the manufacturer resumes the issuance of dividends.
This brings EABL’s total dividend for the period to Sh11 per share or a cumulative pay-out of Sh5.7 billion to be paid on or about October 30.
SOURCE: Capital business
