East African Breweries PLC Reports a 2% Increase in Volume Compared to the Same Period Last Year

Published On: January 30, 2024Company: East African Breweries PLC (EABL.tz)
What were the key drivers behind East African Breweries PLC's revenue growth?
The key drivers behind East African Breweries PLC's revenue growth were strategic pricing, a strong portfolio, and solid commercial activities. Additionally, the increase in cash and cash equivalents was driven by increased revenue.

Summary

  • The macroeconomic environment is challenging with GDP growth being outweighed by factors such as inflation, rising interest rates, and currency depreciation across the East African region.
  • Consumer purchasing power has been negatively impacted, influencing a shift in behavior towards value seeking and spend reprioritisation.
  • There has been a notable increase in the cost of doing business across the region. On the upside, Kenya and Uganda haven’t increased their excise duty rates on finished goods, and Tanzania has maintained a predictable tax policy.
  • East African Breweries PLC recorded a growth in net sales by 16% to Kshs 66.5 billion while volume grew 2% relative to the same period last year. This resulted from effective strategic pricing, product portfolio, and commercial activities.
  • A reported profit after tax of Kshs 6.8 billion was recorded, which was 22% less compared to the same period last year. This was due to input cost inflation, currency devaluation and rising interest rates, although partly mitigated by pricing and cost management initiatives.
  • The company’s cash and cash equivalents increased by Kshs 6.5 billion at 31st Dec 2023 compared to 31st Dec 2022, an increase driven by revenue growth.
  • The Board of Directors has recommended an interim dividend of Kshs 1.00 per share, subject to withholding tax, to be paid on or about 26th April 2024 to shareholders registered at the close of business on 16th February 2024.

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About East African Breweries PLC (EABL.tz)

East African Breweries PLC produces and distributes a range of beer and spirit brands and non-alcoholic beverages. Popular brands include Tusker Malt Lager, Tusker Lite, Guinness, Pilsner, White Cap Lager, Allsopps Lager, Balozi Lager, Senator Lager, Bell Lager, Serengeti Premium Lager, Johnnie Walker, Smirnoff, Kenya Cane, Chrome Vodka and Ciroc. East African Breweries has operations in Kenya, Uganda, Tanzania and South Sudan; and exports alcoholic and non-alcoholic beverages to Rwanda, Burundi and the Great Lakes region. Subsidiary companies include Kenya Breweries Limited, Uganda Breweries Limited, East African Breweries (Mauritius) Limited, International Distillers Uganda Limited and East African Maltings (Kenya) Limited. Established in 1922, the group has its headquarters in Ruaraka, near the capital of Nairobi. East African Breweries PLC is listed on the Dar es Salaam Stock Exchange

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Giri

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