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The Nairobian

EABL toasts to 20pc half-year profit rise to Sh8.1b

Business

By Graham Kajilwa | Jan 31, 2025

**EABL Group Chairman Dr Martin Oduor-Otieno chats with Managing director and CEO Jane Karuku during the release of the 2024 Half Year Results on Jan 30, 2025.** [Wilberforce Okwiri, Standard]

East African Breweries Ltd (EABL) has announced a 20 per cent increase in profit after tax for the half year ended December 2024.

Over the six months, the brewer posted a net profit of Sh8.1 billion compared to Sh6.8 in the same period in 2023.

The regional brewer announced a Sh2.50 interim dividend compared to Sh1 per share recommended for the half year ended December 2023.

The management said the increase in profitability was partly due to an improved business environment locally, including the strengthening of the Kenyan shilling against the dollar, compared to 2023.

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Managing Director Jane Karuku said the business environment has shown signs of improvement despite reduced purchasing power, particularly among the middle class.

“It shows we are growing persistently, and we are keeping to the strategy,” she said.

“We are not where we would like to be, but it is much better than the last time we were here.”

Chairman Martin Oduor noted that the improved performance came against various challenges, including increased cost of inputs, illicit trade, and shrinking disposable income among consumers, forcing the company to be more innovative in its product development.

“These results reflect not just the financial outcomes but the unwavering dedication to delivering long-term value for our shareholders, customers, consumers and key stakeholders across East Africa,” said Mr Oduor.

During the review period, net sales rose to Sh67.9 billion compared to Sh66.5 billion in the previous period, reflecting a two per cent growth.

Group Chief Financial Officer Rispar Ohaga explained that the profit rise was supported by reduced debt obligations, which went down by Sh5 billion to Sh43 billion and foreign currency gains from the strengthening of the Kenyan shilling.

“If you remember, same time last year, the shilling was exchanging at Sh163 to the US dollar. This has come down to Sh129. For a business such as ours, this is very impactful,” she said.

Of the three markets it operates in - Kenya, Uganda, and Tanzania - the latter grew the most by 16 per cent followed by Kenya at nine per cent and Uganda at three per cent.