East African Breweries Limited (EABL) posted $76.6 million in its half profit to December 2021 from $33.11 million earned in a similar period in 2020.
The brewer attributed the 131 per cent revenue growth to margin expansion, prudent cost management in Kenya, following the lifting of the curfew and re-opening of bars in October 2021.
“The Group’s profit after tax grew to $76.6 million, primarily driven by the higher net sales, margin expansion, robust cost management and the re-opening of bars in Kenya in the second quarter,” EABL said in the statement.
During the period under review, net sales increased by 23 per cent to KSh54.9 billion while volumes increased by 23 per cent as a KSh6.2 billion investment in brands and innovation started bearing fruits.
“Consequently, the group’s profit after tax grew 131 per cent to KSh8.7 billion, primarily driven by the higher net sales, margin expansion, robust cost management and the re-opening of bars in Kenya in the second quarter,” said managing director Jane Karuku.
The Kenyan market returned the highest net sales which increased by 27 per cent leveraging on accelerated strategic investment behind brands and channels with further improvement recorded in the second quarter after bars were reopening.
“Uganda’s innovative channel delivery model ensured outstanding last-mile success, guaranteeing growth. In Tanzania, the net sales grew 15 per cent, with beer and spirits registering double-digit growth. Growth momentum continued through increased strategic investment behind brands and innovations,” the firm said.
The board recommended an interim dividend of KSh3.75 per share, reflecting EABL’s strong performance and confidence in the long-term growth and sustainability of the business.
“We are cautiously optimistic that the regional economies will continue on the recovery path,” she said.