East African Breweries PLC (EABL) has reported Kshs 109 billion in net sales for the year ending June 30, 2023, a similar revenue performance to the prior year.
EABL’s Group volumes were down 7 per cent year-on-year, as sales were impacted by sluggish consumer spending as effects of the challenging macroeconomic environment and regulatory disruptions took a toll on depletions.
Net sales in Kenya declined 4 per cent, with excise tax escalation impacting the price-sensitive mainstream segment. The trading environment in Kenya also affected performance, mainly through trade distractions leading to county-led bar closures. However, the premium spirits segment proved resilient, registering double-digit growth.
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Uganda continued its encouraging half-year growth trajectory, closing at 17 per cent growth aided by pricing benefits and modest volume growth. Tanzania registered a modest growth of 1 per cent as the market continues to adjust to price increases taken earlier in the year.
EABL delivered a net profit of Kshs 12 billion, a 21 per cent decline, on the back of rising input costs, multiple excise tax increases and currency depreciation, which increased prices and cost management initiatives could not fully offset.
The EABL Board has recommended a final dividend of Kshs 1.75 per share, bringing the total compensation for the year to Kshs 5.50 per share.
EABL Group Managing Director & CEO, Ms Jane Karuku, said:
“EABL remained resilient despite the macro-economic headwinds – including global inflation and geopolitical disruptions – which disproportionately raised our costs and depressed consumer spending across the year. Amidst these challenges, we maintained our strategic focus on delivering value to our consumers and stakeholders through execution excellence and operational efficiency.”
Ms Karuku added:
“As we navigate the current volatility, we remain optimistic about the growth prospects for our business. We continue to invest in our advantaged portfolio of brands and insight-led innovations to meet the ever-evolving needs of our consumers. Together with the relentless dedication of our teams, I expect that we will continue to deliver topline growth, sustained profitability and consistent cash flow generation.”
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EABL continued to reap from wise investment behind brands, digital and consumer experiences, investing Kshs 12.9 billion in capital expenditure during the year. The company’s Environmental, Social and
Governance (ESG) plan to promote positive drinking, champion inclusion and diversity and pioneer grain-to-glass sustainability continued apace with significant investments behind strategic sustainability initiatives across East Africa.