EABL’s half-year profit hits five-year high to Sh8.7b

EABL General Managing Director Jane Karuku. [David Gichuru, Standard]

East African Breweries Ltd’s (EABL) net profits more than doubled in the first half of 2021 to a five-year high of Sh8.7 billion.

The brewer was boosted by the reopening of entertainment joints following the easing of Covid-19 containment measures.

The performance is compared to a profit after tax of Sh3.8 billion that the brewer made in the first six months of 2020, a period when alcohol sales were ravaged by the negative effects of the Covid-19 pandemic, including the closure of bars and the dusk-to-dawn curfew.

During the period under review, EABL’s sales jumped by 23 per cent to Sh54.9 billion, which the brewer noted was realised through strong organic growth across East Africa.

As a result, the board has recommended an interim dividend of Sh3.75 per share.

“During this pandemic, our strategic clarity enabled us to maintain focus on brand-building, active portfolio management, consumer-led innovation, and digital transformation, all executed through extra-ordinary efforts and resilience of our people,” said EABL Managing Director Jane Karuku in a statement yesterday.

Kenya’s net sales increased 27 per cent compared to Uganda’s 18 per cent and Tanzania’s 15 per cent. EABL attributed Kenya’s big jump in net sales to the reopening of bars in the second quarter.

President Uhuru Kenyatta lifted the dusk-to-dawn curfew on October 20 last year. The curfew had been in place since March.

The taxman also benefited from this growth, raking in more from indirect taxes such as excise duty and value-added tax.