EABL posts 4.7pc revenue growth

Nairobi. East African Breweries Limited (EABL)’s revenues improved 4.7 per cent to close the half-year at $359.5 million, driven by its bottled beer business in Kenya and Tanzania and the spirits segment.

However, EABL’s after-tax profit for the six months to December dipped 11.3 per cent to $48.4 million following a weak performance by the Kenyan market and higher costs.

EABL’s beer business were however pulled back by a depressed performance in Kenya (extended electioneering) and Uganda (higher excise tax) while higher sales and advertising costs further ate into its top-line.

“It is encouraging that bottled beer is in recovery and mainstream spirits continues to grow strongly,” Mr Andrew Cowan, EABL’s managing director, said in a statement.

“Our increased investment behind our brands in sales and advertising underlines our bold strategy to pursue existing and emerging growth in all segments of our business.”

The brewer cost of sales increased by $21.7 million to $203.2 million while other costs also went 1.4 per cent to $84.9 million as the brewer rolled out more campaigns to spur consumption.