East African Breweries Limited (EABL) posted a 47 per cent decline in net profit to KSh3.8 billion for the half-year ended December 2020 primarily driven by a one-off tax provision.
This was also on account of excise duty increases, general price inflation, and additional costs related to digital tax stamp implementation in Uganda which impacted profitability.
The performance is 53% better than the previous half (January to June 2020) that was significantly impacted by Covid-19 restrictions according to the listed brewer.
“Throughout the Covid-19 crisis, we have ensured a dynamic and close connection with the consumer. Our greatest assets remain our brands and we have been able to adapt to the changing consumer needs while providing safe channels through which they have continued to enjoy our products, ” Jane Karuku, EABL’s MD and CEO said.
Markets Sales highlights for the first half:
➢ Kenya: declined 10% compared to the same period last year due to Covid-19 containment measures that saw continued closure of bars as well as a ban on sale of alcohol in restaurants in the first quarter. Although the bars and restaurants were re-opened in the second quarter, operations were impacted by the protocols implemented for the safety of consumers as well as the restrictions of opening hours and the curfew.
➢ Uganda: delivered net sales growth of 13% compared to the same period last year. This was driven by leveraging wholesale channels, enlisting of new selling points at mini-shops, home deliveries and e-commerce partnerships.
➢ Tanzania: with minimal impact of Covid-19 related lockdowns, the market continued to deliver double-digit growth. Net sales grew 17% compared to the same period last year driven by broad-based growth across all categories. Beer net sales grew 17% with strong growth from the ongoing success of the Serengeti