FEATURED ARTICLE

EABL Half-Year Profit Jumps 9% to Sh7.2 Billion

Share
Crates of beer being moved along a conveyor belt in East African Breweries Limited (EABL) factory. The brewer's half year profits have tumbled on COVID woes.
Share

East African Breweries Limited (EABL) has posted a profit of Ksh7.2 billion for the half-year ended December 31, 2019, representing a 9% increase compared to a similar period the previous year.

The company attributes its profits to increased revenue, strong innovation pipeline and cost efficiency.

Revenue posted by the brewers also increased from Ksh41.57 billion in December 2018 to Ksh45.85 billion this year.

Profit before income tax stood at Ksh 10.6 billion up from Ksh9.7 billion while gross profit stood at Ksh21.8 billion up from Ksh19.17 billion.

The group’s capital expenditure stood at Ksh4.4 billion channeled into improving production capacity for existing and new brands.

The Diageo owned company has now recommended an interim dividend of Ksh3 per share up from the Ksh2.50 recommended the previous year.

Speaking after the release of the results, EABL CEO Andrew Cowan said that despite the good perfomance the company is heading to H2 cautiously amid a tough business operating environment.

“We remain cautiously optimistic about our second half of the year, although unpredicted tax and regulatory changes and challenges in our operating environment continue to present potential risks,” Mr Cowan said.

According to Cowan, group volumes grew by 5% driven by a strong mix of brand categories.

During the course of last year, the brewers embarked on adding new brands to its portfolio including Tusker Cider, Hop House 13, Guinness Smooth, Sikera, Smirnoff X and Triple Ace Vodka.

Cowan says the new brands have been instrumental in increasing the company’s profits.

See Also>>>EABL Expands Portfolio With New Spirit

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

PAST ARTICLES AND INSIGHTS

Related Articles
Absa Bank Kenya Business Banking Director Renato D'Souza (right) and Google Product Marketing Manager, Brand and Reputation, Sub-Saharan Africa, Monica Kang'uru, during the signing of a strategic partnership
BUSINESS

Absa Bank Kenya partners with Google Hustle Academy to Train SMEs

Absa Bank Kenya Plc and Google Hustle Academy have announced a strategic...

NSE CEO Frank Mwiti, Family Bank Founder T.K. Muya, CEO Nancy Njau, CBK Chair Andrew Musangi & NSE Chair Kiprono Kittony join Brian Mutunga & Tony Waweru during the listing of the bank’s shares
BUSINESS

Family Bank Share Price hits Volatility on NSE Debut

Family Bank’s share prices on first day at the Nairobi Securities Exchange(NSE)...

Diageo ASAHI
NEWS

Justice Mong’are, the Machakos Injunction and the EABL-Asahi Questions Kenya Cannot Ignore

The EABL–Asahi transaction has become more than a corporate acquisition; it is...

CBK headquarters in Nairobi
BUSINESS

CBK Borrows KSh43Billion for Budgetary Support

(CBK)Central Bank of Kenya received bids worth KSh 78 billion at this...