The East African Breweries Limited (EABL) has recorded remarkable profit growth in the past six months after tax from continuing operations driven by net sales growth of 8%.
The profit has been largely driven by a double-digit growth in five out of eight product segments and recovery in Senator Keg, it hit Ksh. 5.5 billion.
EABL Group Managing Director Charles Ireland says that despite the challenging economic environment in East Africa the company has registered solid performance.
“We have experienced business volatility and foreign currency challenges across the region, however we have a clear strategy and will continue to build on new opportunities to drive out business growth”, he said.
Senator Keg brand and spirits have driven good performance and innovations led by Chrome Vodka, Kenya Cane Coconut and Allsopps Stout as well contributed to the growth.
However in local currency terms net sales in Uganda and Tanzania remained flat making the Company to experience a decline in the export markets mainly due to the volatile environment in South Sudan.
Compared to last year, selling, distribution and administrative expenses increased by 10% and investment in brands continues.
The Company recorded interim dividend of Kshs. 2 % and share up to 33% with an increase from cash flow operating activities of 51% as a result of efficient management of working capital.
The total net borrowings decreased by Ksh. 8.5 billion as a result of strong operating cash flow whereas the total profit for the half profit grew by 67% billion inclusive of the contribution from subsidiary.