EABL records Sh10.9bn in profit for FY20/21

NAIROBI, Kenya, Jul 30- East Africa Breweries Limited has recorded Sh10.9 billion in profit for 2020/2021 fiscal year with revenues up 15 per cent to Sh86 billion.

The alcohol beverage manufacturer said that the slower profit growth rate was driven by the impact of cost inflation, adverse foreign exchange and tax charges.

As such, EABL’s cost of sales in the year rose by a higher 15.8 per cent to Sh48.5 billion from Sh41.9 billion previously.

The group’s income tax charge also rose to Sh3.9 billion from Sh3.6 billion last year.

EABL Group Managing Director and CEO, Jane Karuku, said, “Through Fiscal 2021, the pandemic continued to impact the business negatively across East Africa due to the restrictions in Kenya and Uganda and the general decline in disposable incomes in the region. We responded to the new realities by continuing to invest behind the brands, expanding capacity and sustaining productivity initiatives to manage our cost base to ensure we emerge stronger.”

Looking into the future, Karuku added, “We are cognisant of the fact that the uncertainty posed by the pandemic will continue. However, we are confident that our strategy is working and will continue to focus on business recovery to grow top line and recover margin.”

In Kenya, the business registered 10 percent year on year revenue growth, with H2 growing 45percent off-setting a 10percent decline in H1.

“Performance was driven by expanding and adapting the product portfolio to meet emerging channels and new consumer occasions while continuing to invest ahead on our strategic brands,” the group said.

The business saw its greatest rebound in Uganda where revenues were up by 33 percent year on year, with beer and spirits both recording double-digit growth.

Growth was driven by the business’ agility in response to the changing consumer shifts and emerging channels.

In Tanzania,  revenues were up 15percent, with beer and spirits both registering double-digit growth.

The business sustained strong growth through investment behind the brands and capacity expansion for both beer and local spirits production.

In regards to the pandemic, the company said it responded with agility, leveraging changing consumer behaviour and channel shifts, especially around e-commerce, home delivery and take-home trade.

EABL’s board did recommended a final dividend to shareholders.