East African Breweries Plc (EABL), East Africa’s leading total beverage alcohol business, has today announced its unaudited half-year financial results for the six months ending December 31, 2024, showcasing profit growth in a challenging operating environment.
The first half of the fiscal year witnessed easing inflation and currency appreciation in Kenya and Uganda, contributing to improved business conditions. In Tanzania, the initial currency depreciation at the start of the half reversed towards December as the Tanzanian currency strengthened. Interest rates across the region also showed a downward trend, further supporting recovery. Despite these positive shifts, some challenges prevailed including shrinking disposable income and input cost inflation impacting the cost of doing business.
EABL posted a net revenue of Kes. 67.9 billion, reflecting a 2% increase compared to the same period last year and a volume growth of 1%. This growth momentum is supported by continuous investments in innovative product offerings, impactful marketing campaigns and bolstered by route-to-market efficiencies.
Profit After Tax for the period grew by 20%, reaching Kes. 8.1 billion, supported by reduced interest cost as the company reduced its debt by Kes 5 billion and foreign currency gains from the strengthening Kenya shilling.
EABL Group’s earnings undermined by regional macro-economic slowdown
Jane Karuku, Group Managing Director and CEO of EABL, said:
“Our strong performance this half underscores the resilience of our business and the agility of our teams. We have remained steadfast in controlling what we can and navigating challenges effectively. This has allowed us to stay on course with our long-term strategy of delivering sustainable growth.”
The Board recommends an interim dividend of Kes. 2.50.
EABL has continued to implement its strategy of embedding innovation and sustainability at the core of its operations. In the first half, the company launched several new products tailored to meet evolving consumer preferences, including Snapp Dry Cider, Baileys Strawberries and Cream, Casamigos Tequila among others.
Additionally, the company advanced sustainability initiatives such as Project Rudisha, the business’s Sprits bottles reuse initiative, accelerating its water efficiencies and use of its Biomass Steam Plants, aligning with its commitment to environmental stewardship and contributing to the broader goals of circular economy.
The results for the half year reaffirm EABL’s commitment to its business fundamentals and strategy. The company’s focus on innovation, operational efficiency, and strong stakeholder relationships continues to position it as a leader in the regional market.
