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East African Breweries PLC (EABL) has reported Kshs 54.9 billion in net sales for the half-year ended 31 December 2021, representing a 23% growth compared to the same period last year.
Volumes grew strongly at 23%, driven by investment behind brands and innovation in the route to market in
response to consumer behaviour shifts. Additionally, the continued investment in the capacity of Shs 6.2 billion
enabled EABL to rapidly respond to the increased consumer demand.
Consequently, the Group’s profit after tax grew 131% to Kshs 8.7 billion, primarily driven by the higher net
sales, margin expansion, robust cost management and the re-opening of bars in Kenya in the second quarter.
EABL has reported the best interim profit after tax in the last 5 years.
EABL Managing Director Jane Karuku said: “During this pandemic, our strategic clarity enabled us to maintain
focus on brand-building, active portfolio management, consumer-led innovation, and digital transformation,
all executed through extra-ordinary efforts and resilience of our people.”
Markets Sales Highlights for the Half-year:
➢ Kenya: Net sales increased 27% primarily due to accelerated strategic investment behind brands and
channels. The re-opening of bars in the second quarter further improved the net sales growth.
➢ Uganda: Net sales grew 18% driven by the market’s agile response to the shifting consumer trends as
well as strategic pricing decisions. Uganda’s innovative channel delivery model ensured outstanding
last-mile success, guaranteeing growth.
➢ Tanzania: Net sales grew 15%, with beer and spirits registering double-digit growth. Growth
momentum continued through increased strategic investment behind brands and innovations.
Commenting on EABL’s Environmental, Social and Governance (ESG) agenda, Mrs. Karuku said: “We continue
to focus on Spirit of Progress, our 10-year sustainability programme. This is a three-pronged agenda aimed at
promoting positive drinking, championing diversity and inclusion and pioneering grain to glass sustainability
across our value chain.
Our regional effort to support the hospitality sector through the pandemic has gathered pace, with 60% of the
Raise the Bar fund (Kshs 570 million) already spent. This fund is enabling physical and digital support to bars
welcoming customers back after lockdowns. EABL has also complemented government efforts across the
region in driving national programmes to combat the impact of COVID-19, vaccinating our employees, their
families, and consumers.”
Looking into the future, Mrs. Karuku added: “The trading environment remains uncertain with the lingering
socio-economic impact of the pandemic, excise tax volatility, and the upcoming electioneering period in Kenya.
However, we are cautiously optimistic that the regional economies will continue on the recovery path,
sustaining growth momentum across East Africa.”
The Board has recommended an interim dividend of Kshs 3.75 per share. This reflects EABL’s strong
performance and confidence in the long-term growth and sustainability of our business.
