KENYA – East African Breweries Limited is set to invest 3.4 billion shillings ($32.69m) in a keg racking machines in a bid to increase production of its keg product.
EABL Managing Director Andrew Cowan says the move is aimed at increasing production capacity to 300 million mugs of senator beer.
The Senator beer has continued to increase in sales volumes having grown sales by 21 per cent in the first half of 2017.
Cowan says this is part of the firms increased investments in its business.
The brewer says it has invested 5.5 billion shillings ($52.91m) in physical assets and improving capacity of the business by getting world class facilities in the last five years.
Among the investments include mash filter and work recovery, Tusker Cider and Smirnoff bottle redesign, fire detection and fighting equipment as well as returnable packaging and new keg barrels to support growth.
The firm made Sh5.6 billion ($53.87m) net profit for the six months ended 31st December 2016, delivering a 2 per cent growth in profit after tax from continuing operations.
Capital expenditure for the period was Sh1.8 billion ($17.32m), a growth of 14 percent from last year spent on increasing capacity, improving efficiency, quality and safety of our operations thereby reflecting our confidence in the future of the business.
The firm is also planning to review and offset lazy assets in a bid to improve liquidity.
“We sold Central Glass Industries Limited (CGIL) since it was not our core business; the trend will continue further in the second half,” said Cowen.
Moreover, the firm will continue to engage stakeholders in the industry especially on the local tax environment that is hurting the sector