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East African Breweries H1 pretax profit down 8 pct

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mkonomtupu		#31 Posted : Thursday, February 18, 2010 11:12:38 AM
Rank: Veteran Joined: 2/10/2010 Posts: 1,001 Location: River Road		It's good to see that EABL managed to get the president to open the new plant. I think he said something about the brewers looking at making cheap brews in hygienic conditions to fight illicit brews. Does not make a lot of sense but looks like EABL might be getting their lobbying right on taxes so I want to watch this stock after the budget. President and the Finance minister may see the need to do something about the illicit brews in Central.Right now PE 16.6 is okay.
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VituVingiSana		#32 Posted : Thursday, February 18, 2010 3:15:42 PM
Rank: Chief Joined: 1/3/2007 Posts: 18,347 Location: Nairobi		dukawalla wrote: I have always wondered why barley should be grown in Kenya, malted in Kenya, fermented in Kenya, bottled in Kenya and drunk by Kenyans... then >70% of profits taken to the UK. – Just because Diageo owns more than 70 % shareholding in this company directly and / or through proxies. Total nonsense. If not for EABL, Kenya would be importing barley. Still does coz not enough is produced locally. There are many'legal' liquor firms in Kenya: - Keroche - London Distillers (tho I never touch their stuff!) - Sierra guys I believe the registration requirements for the alcohol business may be tougher but that is not Diageo's domain but GoK, MoH, KRA... 1) KBL was 'Kenyan-owned' but Kenyans REFUSED to buy more shares in EABL/KBL during the Rights Issue (or on the stockmarket) & even during a Scrip Issue when EABL needed cash to fight off SAB. 2) Diageo believed in KBL (later EABL) by buying off shares from Kenyans/locals on the NSE. When foreign shareholders sold, Diageo paid the best price for these shares. 3) Diageo provides research & technical assistance for EABL thus expanding the quality & range of products. Bottomline: As Kenyans, we (or our wazees) sold our shares (or did not invest in EABL) when the time came... now stop complaining! [I see the same story/complaints with Safaricom & KQ when Kenyans sell out & then will bitch that 'foreigners' own Safaricom & KQ] Greedy when others are fearful. Very fearful when others are greedy - *to paraphrase Warren Buffett*
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dukawalla		#33 Posted : Thursday, February 18, 2010 5:41:09 PM
Rank: New-farer Joined: 12/1/2009 Posts: 16 Location: Nairobi		@VituVingiSana..i forgot that I was writing in a country where we applaud those who buy Range Rovers from money made from selling maize meant to feed the poor ... or from money meant to educate children who would have otherwise grown up illiterate and where egalitarianism is greatly scorned at especially by the bourgeoisie. What I was saying in very simple words was that the ownership structure and the business practices of some of the “blue-chips” in Kenya and in Africa at large are criminal at best – and aptly atrocious. Due to weak structures in many of our governments, these companies cannot be trusted to safeguard poor (retail) share holders interests. This explains why Safcom still pays pittances despite making grand profits. And also explains why the “Kenyans who used to own KBL” bailed out of the bandwagon. Cases of big company malpractice are not new (http://www.mobileeurope.co.uk/news_analysis/112397/Siemens_bribery_investigation_delays_Nokia_merger.html) or (http://www.xchangemag.com/hotnews/siemens-trial-nokia-management-bribes.html) just to quote. But, it calls from strong governments and vigilance from the knowledgeable populace to keep these things in check. I will not delve on the EABL saga, what happened to SAB is still fresh in our minds. But even more clearly is its role in stifling the growth of local or truly indigenous industry.
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Much Know		#34 Posted : Thursday, February 18, 2010 5:56:37 PM
Rank: Elder Joined: 12/6/2008 Posts: 3,579		Brewer is going down. Sorry Ras Kienyeji Man
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VituVingiSana		#35 Posted : Thursday, February 18, 2010 7:02:14 PM
Rank: Chief Joined: 1/3/2007 Posts: 18,347 Location: Nairobi		@dukawalla - Please discuss facts not general statements. I gave u facts. And stick to Kenyan firms. I am NOT interested in Nokia or Siemens since they are not listed in Kenya. I was one of the Kenyans who agreed with Diageo at the time & chose a Scrip Dividend & bought shares during the Rights. Diageo did all they could to encourage their (KBL/EABL) employees to buy EABL shares as well as the public. Kenyans were in awe/fear of SAB. Many Kenyans had written off EABL. So why blame Diageo who saw opportunity? They were smart. Very smart. I am ready to debate on facts not general bashing of 'foreign firms/shareholders'... Greedy when others are fearful. Very fearful when others are greedy - *to paraphrase Warren Buffett*
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VituVingiSana		#36 Posted : Thursday, February 18, 2010 7:08:49 PM
Rank: Chief Joined: 1/3/2007 Posts: 18,347 Location: Nairobi		dukawalla wrote: @VituVingiSana..i forgot that I was writing in a country where we applaud those who buy Range Rovers from money made from selling maize meant to feed the poor ... or from money meant to educate children who would have otherwise grown up illiterate and where egalitarianism is greatly scorned at especially by the bourgeoisie. Bullcrap... It is not 'foreigners' who stole this money/maize!!! 100% bullcrap! How can you equate Diageo's business with ruto, uhuru, ongeri??? I agree that the theft of school funds & maize is atrocious but these are 100% damu Kenyans. I wish we could hang them. Applaud them? No way! Which 'foreign investor/corporation' was implicated in the maize/school thefts? [I think it was the Brits who 'leaked' the information about school funds missin] I am certain ongeri, ruto, raila, uhuru, kibaki are Kenyan (or East African even if I stretch it)... so where does BAT, Diageo, Vodafone, KLM come into the picture as regards the theft of maize or school fees are concerned? Greedy when others are fearful. Very fearful when others are greedy - *to paraphrase Warren Buffett*
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VituVingiSana		#37 Posted : Thursday, February 18, 2010 7:16:12 PM
Rank: Chief Joined: 1/3/2007 Posts: 18,347 Location: Nairobi		dukawalla wrote: @VituVingiSana I will not delve on the EABL saga, what happened to SAB is still fresh in our minds. But even more clearly is its role in stifling the growth of local or truly indigenous industry. 1) I ask for facts & suddenly you don't want to 'delve on the EABL saga'??? Please do... 2) Castle was controlled by SAB (S.African)so why is SAB a good guy while Diageo a bad guy? 3) What do you mean 'local or truly indigenous'? Greedy when others are fearful. Very fearful when others are greedy - *to paraphrase Warren Buffett*
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sparkly		#38 Posted : Thursday, February 18, 2010 8:35:20 PM
Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi		dukawalla wrote: I have always wondered why barley should be grown in Kenya, malted in Kenya, fermented in Kenya, bottled in Kenya and drunk by Kenyans... then >70% of profits taken to the UK... Thought provoking statements. Two points, 1. Unfortunately we live in a capitalist world, look at the chinese and the russians! As much as we sympathize with mama pima, she has to go out there and compete on the same field as EABL. 2. 70% of EABL profits to Diageo (4 B) is a just reward for the capital they have committed to kenya operations. Look at it holistically- direct (7B) and indirect employment by the firm, supplies of goods and services to the firm(17B), distributors, dealers, transporters, bar owners, taxes to the government (27B). Whats the big deal in paying a 4B dividend to Diageo and 2B to the other shareholders, including my 1K? Or do you work for no pay? Life is short. Live passionately.
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guru267		#39 Posted : Friday, February 19, 2010 5:33:58 AM
Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi		dukawalla wrote: This explains why Safcom still pays pittances despite making grand profits. @dukawalla.. seriously what the hell are you talking about???? finance 101: weak cash flow + high investment expenditure= low dividends no matter how large the profits are... and thats considering if you call a 45% dividend payout crap... i think when you are having these discussions you should really put your personal feelings for foreigners aside and speak facts... here we are selling the hell out of KQ and safcom then ten years from now the same ones crying our asses off when: KQ PBT= 15BILLION SAFCOM PBT=45 BILLION Mark 12:29 Deuteronomy 4:16
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VituVingiSana		#40 Posted : Friday, February 19, 2010 6:34:58 AM
Rank: Chief Joined: 1/3/2007 Posts: 18,347 Location: Nairobi		Oh, I missed the stupid "This explains why Safcom still pays pittances despite making grand profits"... by @dukawalla Safaricom paid 40% of its PAT as dividends... that is pretty good (& among the highest among NSE firms)... Since Safaricom continues investing to build up the network, it also needs to retain cash... Greedy when others are fearful. Very fearful when others are greedy - *to paraphrase Warren Buffett*
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