EABL half-year profit jumps to Sh8.7bn on bars reopening

Kenya’s top brewer by market share East African Breweries Plc (EABL) has doubled its net profits for the six months to December.

This was driven by increased alcohol sales following the lifting of the dusk-to-dawn curfew last year.

The brewer’s after-tax profits for the half-year period grew 131 per cent to Sh8.7 billion up from Sh3.7 billion in a similar period in the previous year driven by a significant growth in sale of its alcohol brands.

The lifting of the curfew in October by President Uhuru Kenyatta was met with cheers from liquor sellers who were significantly boosted by the longer operation hours that rapidly increased sales.

Movement restrictions

The curfew was one of the most impactful Covid-19 containment measures following the end of limited carrying capacity in public service vehicles (PSVs) in August, return of international travel as well as end of other movement restrictions months earlier.

The company’s sales grew to Sh96.8 billion up from Sh78.1 billion even as the firm expressed optimism over a better full-year performance supported by the rising demand of alcohol. 

It also attributed the performance to increased investment in its brands necessitated by shifting consumer behaviour by injecting Sh6.2 billion to expand its production capacity in Uganda and Tanzania. 

“Across the region, we have seen an easing of Covid-19 restrictions contributing to a more favourable trading environment as consumers return to pubs and bars,” said EABL.

Interim dividend

“The broader economic rebound across East Africa continues to strengthen consumer demand across all our product categories, supporting our overall performance,” it said.

The 27 per cent revenue growth in the firm’s Kenya operations puts it ahead of its operations in Uganda and Tanzania which grew 18 per cent and 15 per cent during the same period.

The brewer will pay an interim dividend of Sh3.75 per share to its shareholders before April 27.

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