East African Breweries expects net profit to drop by KSh2.2billion in the year ending June due to the impact caused by the Covid-19 pandemic.
East Africa’s largest manufacturing company in a cautionary statement to shareholders, the subsequent measures taken across the region have impacted the business negatively.
“Consequently, the Board of Directors of the Company hereby informs its shareholders and the general public that EABL’s current performance forecast indicates a decline in profit after tax of approximately 25 percent for the financial year ending 30 June 2020 versus prior year,” said Martin Oduor-Otieno, Chairman of the Board.
Across East Africa, the impact of the coronavirus pandemic on the beer industry led to the closure of on-site consumption as a result of stay at home orders.
“The Company has deployed a raft of measures to minimize impact of the pandemic on its business,” said Oduor-Otieno.
In Kenya, bars were ordered closed in a March 22 with serious implications for brewers.
“Beer production has been severely affected. The little that we manufacture is for sale in cans, with more focus on wines and spirits,” EABL Corporate Affairs Director Eric Kiniti said.
It posted a 59 percent growth in net profit for the financial year ending June 2019. Its profit after tax of KSh11.5 billion in the 12 months to June growing from a weaker base of Ksh7.2 billion in a similar period in 2018.
The Nairobi Securities Exchange (NSE) listed brewer, shares are also traded on the Dar es Salaam Stock Exchange (DSE) and the Uganda Securities Exchange (USE).