Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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Quote:The Board of Directors of East African Breweries Limited (EABL) is pleased to announce the company’s results for the half-year period ended 31st December, 2017. EABL’s volumes grew by 4% and
revenues for the period rose by 5% to Kshs 36.8 billion. However, net earnings were impacted by weakness in the Kenyan market, excise-tax changes in Uganda, increased investment in sales and
advertising as well as accelerated capital investment to boost future capacity. Despite the difficult period, the Group registered Kshs. 4.95 billion in profit for the period.
Key Highlights:
- Group’s volumes grew by 4% driven by bottled beer in Kenya and Tanzania and spirits growth across the business. Excise tax increases in Uganda on imported beer and the weakness in the consumer segment in Kenya, driven by election-related uncertainty continued to impact margins (especially on the value segment of the business)as EABL products became less affordable during the period.
- Group’s capital expenditure stood at Kshs 5 billion or 14% of headline revenue. EABL deepened its capital investments to boost manufacturing capacity, in order to address rising demand in spirits and tap new opportunities presented by value beer.
- Innovation contribution went up to 21%, adding Kshs 7.6 billion to the total revenue across East Africa driven mainly by new brands such as Tusker Cider, Serengeti Lite, Uganda Waragi Coconut and Chrome Vodka.
Overall, EABL is encouraged by the performance in the half-year. The Board and Management have refreshed their focus around the Company’s marketing strategy, expanding route to consumer to broaden products reach and innovating at scale. Pesa Nane plans to be shilingi when he grows up.
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