Higher sales drive East African Breweries’ after tax profit up 40pc

Corporate News

EABL employees work at the Ruaraka plant in Nairobi. PHOTO | FILE 

By MUGAMBI MUTEGI

In Summary

• East African Breweries reported on Friday a 40 per cent rise in after-tax profit to Sh9.57 billion for the year ended June.
• The brewer’s export business grew 60 per cent, despite political challenges in Burundi and forex challenges in Rwanda.
• The firm also restated its prior year pre-tax profit to Sh10.39 billion from Sh10.41 billion without offering an explanation.

Kenya’s East African Breweries reported on Friday a 40 per cent rise in after-tax profit to Sh9.57 billion ($94 million) in the year ended June, helped by rising sales volumes in its key markets.

The company, which is controlled by Britain’s Diageo, attributed the gains to higher revenue, which rose to Sh64.42 billion from Sh60.75 billion. Profit before tax was up 36 per cent to Sh14.15 billion.

Kenya’s revenue increased just 3 per cent, dampened by an increase in excise tax affecting Senator Keg imposed in October 2013.

Tanzania’s revenue was up 2 per cent, while Uganda grew by 7 per cent.

The brewer’s export business grew 60 per cent, despite political challenges in Burundi and forex challenges in Rwanda.

“We believe these results are satisfactory given the economic conditions across East Africa,” said Charles Ireland, EABL’s chief executive officer.

“(However) we are not content and believe there are many more opportunities still to be captured and many challenges to overcome.”

Earnings per share at the brewer rose to Sh11.32 from Sh8.22 a year before.

EABL, which also operates in South Sudan, said it will pay six shillings per share in dividend, up from Sh5.50 the previous year.

Additional reporting from Reuters