EABL more than doubles full-year profit on high-sales, improved operating environment

KENYA – East African Breweries Plc (EABL) has delivered another set of strong results, with robust growth in sales and a resounding triple-digit growth in profits in the full year ended 30th June 2022.

The owner of Tusker lager has more than doubled its full-year profit to Ksh.15.6 billion (US$131m) from Ksh.7 billion (US$58.9m) in the financial year ended June 2021.

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The 124% rise in bottom-line performance is primarily tied to the near full recovery of sales following the withdrawal of most COVID-19 related restrictions which had limited the operations of bars and entertainment spots.

Also, EABL navigated rising inflation and increase in excise taxes through strategic pricing and effective cost management to deliver its highest profit in 5 years.

Consequently, EABL’s net sales in the period have soared by 27 per cent to Ksh.109.4 billion (US$920m) from Ksh.86 billion (US$723m) attained the previous corresponding period.

The group’s net sales were boosted by double-digit growth across all its markets and categories owing to an improved operating environment, coupled with sustained investment behind marketing and commercial activities.

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During the period under review, the drinks maker delivered a strong beer performance, up 27 percent, aided by the beer recovery in Kenya.

Its spirit’s category was up 26 percent, boosted by a 27 percent growth in mainstream spirits.

“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, Ms. Jane Karuku.

EABL showcases stellar performance across all markets

Kenya, EABL’s largest market, delivered 30 percent net sales growth, mainly on the back of strong beer recovery and continued growth in spirits – fuelled by premium and upper mainstream segments.

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Meanwhile Uganda recorded 24% growth in net sales 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.

Crossing boarders to Tanzania, net sales grew 21 percent, driven by consistent growth of the Serengeti Trademark and an expanded brand portfolio.

Ms. Karuku added, “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.”

She highlighted that the company’s sharp focus on executing against its strategy, supported by an external focus, data-led insights and a culture of everyday efficiency will help them navigate current and future headwinds.

“As we celebrate 100 years of EABL’s operations in the region, we believe we are well positioned to deliver sustainable long-term growth,” she stated.

Ms. Karuku further highlighted that EABL’s Environmental, Social and Governance (ESG) agenda remained a key focus in the year with finalisation of the Kshs 5 billion (US$42m) biomass plant being a key milestone.

The facility will enable the company achieve Net Zero status, reducing its carbon emissions by 42,000 metric tonnes annually.

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