East African Breweries has reported a sharp improvement in interim earnings for the six months to December 2025, with profit rising 38% and revenue reaching a record KSh 75.5 Bn, as stronger volumes, margin recovery, and lower leverage offset weak consumer spending and rising illicit alcohol penetration across the region.
- •Profit after tax rose to KSh 11.2 Bn from KSh 8.1 Bn a year earlier, supported by an 8% increase in volumes, flat operating expenses, and a sharp reduction in finance costs following sustained debt reduction.
- •The board declared an interim dividend of KSh 4.00 per share, up from 1.50 a year earlier, with a book closure date of 20 February 2026 and payment expected on or about 30 April 2026.
- •The company said the proposed sale of Diageo’s shareholding to Asahi Group Holdings remains subject to regulatory approvals and is expected to complete in 2026, with no immediate impact on operating strategy.
Earnings before interest and tax increased 20% to KSh 18.6 Bn, while net finance costs fell 37%, reflecting lower borrowings and improved funding efficiency.
Revenue growth re-accelerated after a softer prior period, rising 11% year on year. Growth remained uneven across markets. In local currency terms, net sales value rose 35% in Tanzania, which accounts for 17% of group sales, and 9% in Uganda, which contributes 21%. Kenya, the group’s largest market at 62% of sales, recorded growth of 2%, highlighting pressure on discretionary spending in the domestic market.
Cash from operations rose to KSh 25.0 Bn, while management reported free cash flow of about KSh 14 Bn. Cash and cash equivalents increased to KSh 17.7 Bn at the end of December, supporting both balance-sheet repair and shareholder distributions.
Total debt declined to KSh 37 Bn, down from 39 Bn in December 2024 and KSh 43 Bn a year earlier. Net debt to EBITDA improved to 0.5 times, from 0.9 times in the prior half year and 1.6 times in 2023, marking a sharp deleveraging trend.
Households Cut Back
The brewer has said that alcohol’s share of consumer wallets has declined as households cut back on discretionary spending, while illicit alcohol now accounts for about 60% of total consumption, up from roughly 50% a few years ago.
By product segment, premium spirits, including tequila and Johnnie Walker, grew 8%, while mainstream spirits increased 17%, reflecting a consumer shift toward more affordable offerings even as premium brands continued to expand.
Margins improved but remain below pre-pandemic levels. Net profit margin recovered to 14.8%, indicating cyclical earnings recovery supported by cost discipline and lower finance costs rather than a full structural reset.
Equity attributable to shareholders rose to about KSh 48.0 Bn, supported by higher retained earnings despite increased payouts. The implied payout ratio of about 17% points to a conservative distribution policy.
