East African Breweries Limited half-year profits after tax are up 33 per cent. The company recorded Ksh6.6 billion profit after tax for the half year period that ended on 31 December 2018 up to Ksh6.6 billion from Kshh4.9 billion recorded in the same period in 2017.
The beer maker and distributer revenues registered a 13 per cent increase to Ksh41.5 billion from Kh36.8 billion during the year under review. The increased revenue has been attributed to growth in sales in Kenya, Uganda, and Tanzania.
“Our strategy, which aims to deliver a vibrant mainstream beer, explode our mainstream spirits, win in premium and recruit from illicit alcohol, has given all our businesses a broad and solid foundation from which to deliver a more consistent performance in the future,” said EABL’s chief executive Andrew Cohan.
Tanzania recorded the highest sales increase at 26 per cent while Kenya and Uganda each gained 12 per cent in net sales increase. Beer sales rose 12 per cent while the spirits segment gained 16 per cent rise.
Kenya’s revenue growth was largely driven by a 35 per cent increase in sale of Senator Keg. Increased distribution channels, powerful national campaigns, and sustained marketing investments are some of the factors that helped deliver a good sales performance despite the “excise-driven price increase”.
Increased investment in spirits capacity through innovative products such as Captain Morgan Gold bore fruit with a 17 per cent growth in Spirits sales in Kenya.
Uganda recorded 11 per cent increase in beer sales and 16 per cent growth in spirits sales. Tanzania’s sales growth of 26 per cent was largely driven by the consistent rise of the Serengeti trademark.
The company benefited from the low interest rates environment in Kenya which resulted in low interest charge on its books and therefore boosted its bottom-line.