The closure of bars and restaurants and ban on public gatherings introduced in Kenya in March 2020 had a negative impact on EABL’s sales. In the half year period that ended on 31st December 2020, EABL’s net sales declined by 3% to KSh44.46 billion from KSh45.86 billion in the same period in 2019. The company’s net sales in Kenya dropped by 10% in the period under review.
While the demand for alcoholic drinks in Kenya fell, neighbouring markets -Tanzania and Uganda – recorded remarkable growth in the demand for EABL products, thereby boosting the firm’s revenue. Net sales in Tanzania and Uganda jumped 17% and 13% (YoY) respectively in the six months from June to December 2020.
EABL’s net profit in the half-year period fell by 47% to KSh3.79 billion from KSh7.21 billion in the same half-year in 2019. The company attributes the sharp drop in net profit to foreign exchange losses, a rise in the cost of sales, and a one-off tax provision.
The brewer cut its operating expenses by 6% in the six months from June to December by limiting discretionary spending.
Even in the tough economic times, EABL invested KSh 4.1 billion in expansion projects and environmental projects that support its long term growth and sustainability goals.
