East African Breweries Limited (EABL) on Thursday announced its results for the financial year ended 30 June 2016, posting Ksh 10.3 billion in profit for the year, a 7% growth compared to the previous financial period.
EABL’s performance was largely driven by continued growth in the spirits category, recovery of Senator in Kenya and innovation across all markets. Kenya’s headline revenue growth was 16% while Uganda grew by 5% and Tanzania by 12%. However, as a result of the decline of the South Sudan business and negative foreign exchange impact, group net sales remained flat.
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Most of EABL’s product segments experienced growth: emerging beer by 112%, buoyed by Senator in Kenya, Ngule in Uganda and Pilsner in Tanzania; mainstream spirits grew by 22%, premium beer by 2% and Ready-to-Drink (RTD) by 3%. Mainstream beer was down 6% while premium and emerging spirits were down 9% and 2%, respectively.
Cashflow from operating activities increased by 32% to Ksh 27.9 billion as a result of better than forecasted Senator volume coupled with efficient management of working capital. Net capital expenditure (CAPEX) spend for the period was Ksh 5 billion, covering investment to increase capacity, improve efficiency and safety as well as into returnables in order to meet increased demand for our brands across the region. Total group net borrowings decreased by 17% to Ksh25 billion.
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EABL’s Group Managing Director Charles Ireland said: “This has been an exciting year on many fronts and we are pleased to have delivered solid results. We still have a host of opportunities to unlock, not least in tapping an increasingly discerning customer base. I am confident that the investment we have made in our systems, brands and people will help us to take full advantage of these opportunities. We will continue to focus on innovation and prudent cost management and remain flexible to anticipate and respond to external factors in the region.”
EVENT; Friday 29th July 2016; EABL FY Results Release/Investor Briefing
The Board of Directors has recommended a final dividend of Ksh 5.50 per share. The 2016 annual dividend remains unchanged from last year at Ksh7.50 per share. During the same year, the company also paid a special dividend of KSh 4.50 per share, enabled by the disposal of Central Glass Industries (CGI) and other non-core assets.
