East African Breweries Plc (EABL) has posted a strong set of unaudited half-year results for the period ended December 31, 2025, underpinned by higher revenues, improved profitability, and a strengthened cash position, allowing the group to significantly raise its interim dividend.
According to the results released by the company on January 29, EABL’s net earnings rose by 37.68 per cent to Ksh11.16 billion, compared to the corresponding period a year earlier. The performance reflects a broad-based improvement across the group’s operations, supported by higher sales volumes, disciplined cost management, and improved operational efficiencies.
On the back of the improved earnings, the EABL board declared an interim dividend of Ksh4.0 per share, representing a 60.0 per cent year-on-year increase.
The dividend will result in a total payout of Ksh4.35 billion for the half-year period, underscoring management’s confidence in the group’s financial position and cash generation capacity.
Revenue growth remained a key driver of performance during the period under review. The group recorded higher net sales, supported by improved demand across its core markets, favourable pricing actions, and continued focus on premiumisation within its product portfolio.
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Management noted that the operating environment remained challenging, but execution discipline and portfolio optimisation helped mitigate cost pressures.
EABL’s profitability was further supported by a solid operating performance. Earnings before interest and tax (EBIT) increased, reflecting both topline growth and improved cost control.
The group continued to benefit from productivity initiatives, procurement efficiencies, and supply chain optimisation, which helped cushion the impact of inflationary pressures on raw materials, energy, and logistics.
The balance sheet also showed notable strengthening over the period. Cash and cash equivalents closed at Ksh17.7 billion, a 25.62 per cent increase from the same period last year.
The higher cash position provides the group with enhanced financial flexibility to meet its operational requirements, fund capital expenditure, and support shareholder returns.
EABL maintained a prudent approach to capital allocation during the period, balancing dividend payments with continued investment in brand building, manufacturing capabilities, and route-to-market infrastructure.
The group indicated that capital expenditure remained focused on capacity optimisation, efficiency improvements and sustainability-related initiatives across its breweries and distilleries.
From a financial position perspective, EABL reported stable asset levels and a well-managed liabilities profile. The group continued to manage its working capital efficiently, supported by disciplined inventory management and improved receivables collection.
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This contributed to the strong operating cash flows recorded during the half-year. In its outlook commentary, EABL noted that it remains focused on navigating a dynamic operating environment characterised by volatility in input costs, regulatory developments, and evolving consumer preferences.
Management reaffirmed its commitment to driving sustainable growth through innovation, premium offerings, and responsible consumption initiatives, while maintaining financial discipline.
The company also provided an update on the ongoing ownership transition involving its shareholders. EABL confirmed that the proposed acquisition by Asahi Group Holdings of Diageo’s entire shareholding in the business is expected to close within the 2026 calendar year, subject to the completion of the required regulatory approvals and customary closing conditions.
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