The Board of Directors of East African Breweries PLC (EABL) has announced the Group’s audited results for the year ended June 30, 2024.
In a notice on Tuesday, July 30, EABL published condensed statement of comprehensive income, changes in equity, cash flows and the financial position as the year ended.
EABL’s profit before income tax declined from Ksh18.7 billion in June 2023 to Ksh16.7 billion in the last financial year.
This saw the income tax expense reduce from Ksh6.3 billion in June 2023 to Ksh5.9 billion in the just ended financial year.
“Profit after tax declined 12% to Ksh10.9 billion, impacted by currency devaluation and rising interest rates,” read the notice in parts.
However, the operating profit excluding foreign exchange losses grew by 10% to Ksh28.8 billion as pricing and productivity offset cost inflation.
Net sales also grew by 13% to Ksh124.1 billion while volume grew 1%. EABL attributed this to strategic pricing, a strong portfolio and innovation launches.
Cash and cash equivalents increased by Ksh1.8 billion to Ksh10.8 billion, driven by revenue growth and improved working capital management.
The Board said the total debt reduced by Ksh11 billion cushioning the impact of rising interest rates.
EABL CEO on Innovation
EABL Group Managing Director (MD) and CEO Jane Karuku said the results were achieved by leveraging the Company’s advantaged portfolio and exciting, consumer led, innovations.
Additionally, she explained that the supply productivity allowed EABL to mitigate some of the impact of cost inflation.
“We have delivered a solid double-digit topline and operating profit (excluding FX impact) growth in a challenging environment, highlighting the strength of our core business and our ability to capture market opportunities effectively,” Karuku said.
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The MD said the Company’s new microbrewery continues to enable it to tap into the next generation of consumers, whilst investment in digital capabilities has meant they can service their customers and consumers more efficiently.
Further, Karuku said EABL continues to make great progress against ITS Environmental, Social and Governance (ESG) goals, surpassing its targets for the year.
“This performance is a result of the EABL team who have remained highly engaged, externally curious, collaborative, agile and bold in navigating a volatile environment. I am grateful to our team and to our stakeholders for their continued support and commitment,” she said.
Karuku said the Company remains committed to deliver consistent and sustainable long-term growth.
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Group Chairman Congratulates Team
EABL Group Chairman Dr. Martin Oduor Otieno said the Company has demonstrated resilience and strategic agility achieving commendable results despite of challenges experienced during the period.
He explained that the last financial year has been marked by significant macroeconomic volatility across East Africa.
This includes inflationary pressures, regulatory changes, rising interest rates and fluctuating currency posed substantial hurdles for consumer spending and business operations.
“On this backdrop, EABL has posted a strong revenue growth of 13% with operating profit (excluding FX impact) growth of 10%. of 10%. Profit after tax declined 12% mainly impacted by currency devaluation and significant increase in finance costs,” he said.
Oduor said the EABL Board has declared a final dividend of Ksh6.00 per share, bringing the total dividend to Ksh7.00 per share.
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