East African Breweries Limited’s (EABL’s) profit after tax dropped by 12 per cent to Kes 12 billion in the full year ending June 2023.
The firm attributed the decrease to rising taxes, inputs, and currency depreciation.
EABL’s Kenyan unit performance declined by four per cent, while Ugandan and Tanzanian units registered 17 per cent and one per cent improvements, respectively.
In a statement, the firm noted that the reduced earnings were also due to a drop in the Group’s volumes, which fell seven per cent year-on-year, weighed down by sluggish consumer spending in a tough macroeconomic environment and regulatory disruptions.
“Net sales in Kenya declined 4 per cent with excise tax escalation impacting the price-sensitive mainstream segment. The trade environment in Kenya also impacted performance, particularly trade distractions leading to county-led bar closure.”
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However, its premium spirits segment registered double-digit growth.
EABL Group Managing Director and CEO Jane Karuku said the company remains optimistic about the growth prospects for our business.
“We continue to invest in our advantaged portfolio of brands and insight-led innovations to meet the ever-evolving needs of our consumers,” she said.
The EABL Board has also recommended a final Kes 5.5 per share dividend to shareholders.
