NAIROBI, Kenya, Jan 25 – East African Breweries Limited has posted a 33 per cent net profit increase in the first half of 2019 compared to same period in the last financial year to hit Sh6.6 billion from Sh5 billion.
Net sales for the half period ended December 31, 2018 went up by 13 per cent to hit Sh41.6 billon with Tanzania being the best performer, increasing next sales growth by 26 per cent in the period under review.
Kenya and Uganda both saw sales increase by 12 per cent.
Group Managing Director Andrew Cowen says the half year results indicate a better year for the company with a focus on strategic execution.
Kenya contributed about 72 per cent of revenue driven by Senator Keg that was up 35 per cent due to increased distribution and spirits whose net sales went up by 17 per cent compared to last year.
In Tanzania, growth was driven by the Serengeti trademark that was up 65 per cent while in Uganda, beer net sales went up by 11 per cent with spirits going up by 16 per cent.
Overall, reserve spirits that went up the highest by 54 per cent while mainstream spirits went up by 29 per cent. Premium spirits dropped by 3 per cent.
Mainstream beer went up by 17 per cent in the period under review while premium beer went up by 3pc.
“In the last financial year we deliberately invested behind our performance ambition through a step change in our investments behind brands, capital expenditure and capability to sustain future growth momentum. With our brewery set to become full operational soon we expect to provide more and better drinking options expanding our beverage alcohol universe further,” he said.
The board of directors has recommended an interim dividend of Sh2.50 per share for the half year period.