We have extracted below the Company Secretary Statement from the 2019 abridged report of East African Breweries Limited (EABL.tz), listed on the Dar es Salaam Stock Exchange:
The Board of Directors of East African Breweries Limited is pleased to announce its full year results for the year ended 30th June 2019. EABL’s net revenue for the period rose by 12% to Kshs 82.5 billion driven by strong underlying performance on the back of a stable operating environment in the region. Profit before tax grew to Kshs 17.8 billion attributable to increased revenues and continued cost efficiencies across the organization.
- Group’s volumes grew by 11% driven by strong performance across all categories and markets.
- Innovations contributed Kshs 20.3 billion to stand at 24% of the net revenues across our markets mainly driven by brands such as Serengeti Lite, Tusker Cider, Chrome Vodka, Captain Morgan Gold and Uganda Waragi Pineapple.
- Gross profit improved by 18% and profit after tax grew to Kshs 11.5 billion driven by strong underlying performance, positive mix and cost efficiencies driven through the productivity initiatives.
- Group’s capital expenditure stood at Kshs 11.7 billion with completion of the new Kisumu brewery, in line with supporting the company’s future growth.
Overall, EABL delivered a strong and consistent set of results in the year across all categories. We continue a solid sustainable trajectory towards our ambition supported by continued investment behind our brands and capital expenditure.
The Board of Directors has recommended a final dividend of Kshs 6.0 per share. Total dividend for the year is Kshs 8.5 per share.
By order of the Board
Group Company Secretary