East African Breweries Limited PLC (EABL) net profit in the half-year year ending December 2023 was Sh6.8 billion, a 22% decrease compared to the same period in 2022.
The decline was attributed to high inflation, currency depreciation, and rising finance costs.
The devaluation of the local currency caused a forex loss of Sh2.3 billion, an increase of Sh2.1 billion in the review period.
‘’However, our bottom line has been impacted by increased costs of inputs, currency devaluation, and rising interest rates,” EABL Group Managing Director and CEO Jane Karuku said.
Despite these challenges, EABL’s net sales grew by 16% to Sh66.5 billion in the period, driven by high sales in Kenya (10%), Uganda (31%), and Tanzania (9%).
The beer and spirits categories grew by 18% and 13%, respectively. Spending on advertising and promotions rose by 16.5% to Sh6.1 billion.
| East African Breweries Plc (EABL) Income Statement | |||
| Income Statement | H1’2023 | H1’2024 | Y/Y Change |
| Kshs (bn) | Kshs (bn) | ||
| Gross Sales | 104.7 | 119.1 | 13.8% |
| Indirect Taxes | (47.4) | (52.5) | 10.8% |
| Net Revenue | 57.3 | 66.5 | 16.2% |
| Cost of Sales | (30.7) | (37.0) | 20.6% |
| Gross Profit | 26.6 | 29.5 | 11.1% |
| Operating Costs | (11.3) | (15.5) | 36.6% |
| Net Finance Costs | (2.4) | (4.0) | 65.7% |
| Profit Before Income Tax | 12.9 | 10.1 | (21.5%) |
| Income Tax Expenses | (4.2) | (3.3) | (20.1%) |
| Profit After Tax | 8.70 | 6.78 | (22.1%) |
| Earnings Per Share-Annualized | 17.3 | 13.8 | (20.0%) |
Source: East African Breweries Plc (EABL) H1’2024 financial statements
EABL’s priorities for the second half of the year are to remain consumer-centric, drive cost efficiencies to grow margins, invest smartly in their brands and businesses, and continue to deliver against their ESG commitments while driving a high-performance culture and the engagement of their people.
The EABL Board has recommended an interim dividend of Sh1 per share to be paid on or about April 26, 2024.
