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East African Breweries posted a three percent drop in pretax profit to Sh12 billion.
Making the announcement on Friday, the brewer blamed higher barley imports, a weaker currency, tax increases and slow economic growth in Kenya for the dip.
"Our business was not completely insulated from all that. Did it affect our performance? Of course it did," managing director Seni Adetu told investors.
The drinks company, majority owned by Diageo and with operations in neighbouring Uganda and Tanzania, made pretax profit of Sh12.3 billion in the previous year ending June 2008.
Adetu said turnover had increased by six percent to Sh34.4 billion and costs were up 14 percent to 17 Shbillion. Beer volumes had, however, gone down by four percent.
Tax on non-malt beer had risen to 70 percent and to 250 percent for spirits, Adetu said without giving comparative figures.
EABL wants to end a contract with Tanzania Breweries which is 52.8 percent owned by SABMiller, under which TBL manufactures and sells EABL brands in Tanzania.
—Reuters
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