The Lower Eastern Times Opening The Third Eye
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East African Breweries PLC (EABL) has announced a 12% increase in profit after tax, reaching Sh12.2 billion for the year ending June 30, 2025.
The growth was driven by a mix of higher sales, lower finance costs, and favourable foreign exchange gains.
Net sales rose by 4% to Sh128.8 billion, with both beer and spirits showing increased volumes in Kenya, Uganda, and Tanzania.
“Our strong performance, marked by double-digit profit growth, reflects the strength of our strategy and the hard work of our team,” said EABL Chairman Martin Otieno.
“We’ve stayed focused on long-term value creation despite challenges like inflation, reduced consumer spending, and illicit alcohol,” he added.
According to the audited results, finance costs were reduced significantly to Sh5.9 billion from Sh8.1 billion in the previous year. This decrease was attributed to an Sh8.3 billion reduction in debt and the benefits of lower interest rates.
This helped balance out a 17% rise in operating costs, which climbed to Sh29.2 billion.
EABL CEO Jane Karuku attributed the profit increase to effective execution and innovation.
“We continue to invest in our brands and expand our portfolio to stay in tune with today’s consumers. Our strong brand portfolio and excellent commercial execution have enabled us to achieve these results despite the challenging market conditions,” she said.
EABL’s cash reserves grew to Sh12.7 billion, and basic earnings per share rose from Sh10.30 to Sh11.97.
Reflecting the strong financial performance, the Board has proposed a final dividend of Sh5.50 per share, bringing the total dividend for the year to Sh8, a 14% increase from the previous year.