KENYA – East African Breweries Limited (EABL) posted a 19.6 percent increase in net profit to Kes 8.1 billion (US$62.67M) for the half-year ending December 2024, attributed to lower debt and foreign exchange gains.
The improved performance was driven by cost management and reduced finance costs despite economic challenges.
The company’s revenue rose by 2 percent to Kes 67.9 billion (US$525.3M), up from Kes 66.5 billion (US$514.5M) in the same period the previous year.
Net sales also increased by 2 percent, reflecting an 8 percent organic growth when excluding currency fluctuations, while volume grew by 1 percent.
EABL Group Chairman, Martin Oduor-Otieno, noted that business conditions improved due to easing inflation, declining interest rates, and currency appreciation in certain markets.
However, he acknowledged that reduced consumer purchasing power and rising input costs remained key challenges.
The company’s cash and cash equivalents grew by Kes 3.4 billion (US$26.3M) to Kes 14.1 billion (US$109.1M), supported by revenue growth and improved working capital management.
Additionally, total debt decreased by Kes 4.9 billion (US$37.9M), leading to lower finance costs.
“Our strong performance this half underscores the resilience of our business and the agility of our teams. We have remained steadfast in controlling what we can and navigating challenges effectively,” said Jane Karuku, Group Managing Director and CEO of EABL.
Among EABL’s three markets, Tanzania recorded the highest growth at 16 percent, followed by Kenya at 9 percent and Uganda at 3 percent.
Karuku highlighted that while the business environment improved, consumer spending power remained constrained.
Looking ahead, EABL remains focused on its long-term strategy of driving sustainable growth.
The company has continued to embed innovation and sustainability at the core of its operations, launching new products such as Snapp Dry Cider, Baileys Strawberries and Cream, and Casamigos Tequila.
As part of its commitment to shareholders, the EABL Board has recommended an interim dividend of Kes2.5 per share (US$0.019).
The company affirmed its dedication to executing strategic initiatives that enhance growth and profitability in the evolving market landscape.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.