EABL builds up dividend on higher earnings

What you need to know:

  • Sales in Kenya were highest at 22 per cent, mainly driven by a good performance from Senator Keg and spirits. Chrome Vodka, Kenya Cane Coconut and Allsopps Stout also contributed to the growth.
  • Uganda and Tanzania recorded flat sales volumes and value in local currency terms as South Sudan’s volatile market caused a decline in the export markets.
  • Shareholders will earn a Sh2 dividend per share up from Sh1.50 last year following a recommendation by the board of directors.

Shareholders of East African Breweries Limited will earn a Sh2 dividend per share up from Sh1.50 last year after earnings rose 16 per cent.

The regional beer manufacture recorded a 16 per cent growth in net profit for the second half of 2015 to Sh5.5 billion due to an eight per cent growth in net sales including five out of eight product segments and recovery in Senator Keg after duty on wheat was reviewed last year.

EABL Group Managing Director Charles Ireland said the company was on firm ground despite the micro-economic fluctuations experienced last year.

Solid performance

“We have delivered solid performance despite the challenging economic environment in East Africa. In spite of the business volatility and foreign currency challenges across the region, we have a clear strategy and will continue to build on new opportunities to drive our business growth,” Mr Ireland said in a statement Thursday.

Sales in Kenya were highest at 22 per cent, mainly driven by a good performance from Senator Keg and spirits. Chrome Vodka, Kenya Cane Coconut and Allsopps Stout also contributed to the growth.

Uganda and Tanzania recorded flat sales volumes and value in local currency terms as South Sudan’s volatile market caused a decline in the export markets.

Expansion into sales channels and alternative distribution added to EABL’s selling and administrative expenses rising by 10 per cent compared to the same period last year as the brewer sought to have a wider market reach.

“Total net borrowings decreased by Sh8.5 billion as a result of strong operating cash flow and the sale of CGI, contributing to a 38 per cent decrease in net finance costs in the period.

‘‘The total profit for the half grew by 67 per cent to Sh7.7 billion inclusive of the contribution from the disposal of CGI, the glass making subsidiary,” EABL noted in its results.