The Society 2030: Spirit of Progress – East African Breweries PLC Focused on Creating a More Inclusive and Sustainable World Despite Economic Challenges

Published On: September 7, 2023Company: East African Breweries PLC (EABL.tz)
What is East African Breweries 10-year action plan titled, and what does it aim to achieve?
East African Breweries' action plan is titled "The Society 2030: Spirit of Progress". It aims to promote positive drinking, champion diversity and inclusion, pioneer sustainability in their product's life cycle and most importantly, create a more inclusive and sustainable world.

Summary

  • The East African Breweries updated their annual report for the fiscal year 2023, demonstrating resilience despite a tough macroeconomic environment and geopolitical disruptions. These challenges led to increased costs and depressed consumer spending.
  • Increases in excise tax had a lagging effect on consumers’ spending power, which had an impact on the company’s sales. However, the company remains focused on delivering value to consumers through operational efficiency and executional excellence.
  • The company faced several challenges due to the regional economic slowdown and pressure from inflation, which both impacted consumers’ disposable income and increased business costs. Currency depreciation, higher taxes, and rising interest rates in Kenya also impacted business performance.
  • In response to the economic recession, the company witnessed a shift in consumer purchasing behavior as they moved toward unregulated, cheaper products.
  • The Group’s Environmental, Social, and Governance (ESG) plan to promote positive drinking, champion inclusion and diversity, and pioneer sustainability across East Africa remains a significant priority.
  • A range of community programs addressing water access, sanitation, education, and skills development were invested in as part of the company’s ESG initiatives.
  • The company is committed to a ten-year action plan named “The Society 2030: Spirit of Progress” to create a more inclusive and sustainable world.
  • The Board of Directors recommended a final dividend of KShs 1.75 per share, making the total dividend Kshs 5.50 per share for the year.
  • Looking ahead, despite business challenges, the Board remains confident in the company’s strategic plan and commitment to delivering sustainable growth.
  • The Board welcomes Mr. Sathish Krishnan and Mr. John Musunga as new Non-Executive Directors while bidding farewell to Mr. Japheth Katto and Mr. Dayalan Nayager.

Useful links

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

Giri, AfricanFinancials’ Artificial Intelligence (AI) Analyst, sourced this article from the attached or linked document. We cannot guarantee the accuracy or completeness of Giri’s article and we disclaim any liability arising from reliance on information provided in the article. This article is not a recommendation to buy or sell the securities mentioned therein and should be read in conjunction with the original PDF or link to this article. Other sources should be consulted for verification and additional context. Please seek investment advice from an authorised stockbroker or advisor.

Giri

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