East African Breweries Limited (EABL) reported slow profit growth in the year that ended on 30th June 2021, due to the negative impact of inflation, foreign exchange fluctuations, and tax charges. The company’s full-year pretax profit rose to KSh10.86 billion compared to KSh10.66 billion posted in the same period last year.
EABL’s business was severely affected by the covid restrictions in Kenya and Uganda and an overall dip in disposable income in the region.
The brewer’s revenue rose by 15% to KSh86 billion driven by increased investments in the brands and innovation. EABL spent KSh7.8 billion on investment projects meant to support future growth. Selling and distribution costs increased to KSh7.4 billion from KSh6.6 billion the previous year while administrative expenses advanced to KSh9.3 billion from KSh8.6 billion in 2020.
EABL’s long term assets expanded by 5.3% to KSh66 billion from KSh62.7 billion a year ago while the current assets increased to KSh 34 billion from KSh26 billion.
In the last financial year, EABL efficiently managed its working capital, leading to a 337% increase in net cash from operating activities to KSh14.6 billion. The brewer generated KSh3.5 billion from financing activities.
In relation to dividend payment, the company’s board said, “In recognition of the continued uncertainty in the external environment due to Covid-19 related restrictions, the Directors do not recommend a final dividend”.