EABL reported net sales of Kshs 124.1 billion and Operating profit excluding FX of Kshs 28.8 billion representing an impressive double-digit growth of 13 percent and 10 percent respectively, against the prior year.
This was attributable to volume growth of 1 percent led by Beer (+9 percent), strategic pricing, a strong portfolio boosted by disruptive innovation, solid commercial execution, and supply productivity. Growth was recorded across its three core markets with Kenya at 15 percent, Uganda 12 percent and Tanzania 9 percent whilst beer and spirits also grew by 12 percent and 14 percent respectively.
EABL achieved these results on the backdrop of a challenging and unpredictable operating environment characterized by reduced consumer purchasing power driven by the higher cost of living, as well as disruptions brought about by El Nino rains and political unrest.
Significant increases in interest rates and currency devaluation, particularly in the first half of the fiscal, increased the Group’s cost base majorly impacting profitability, as the company’s profit after tax dropped by 12 percent.
The EABL Board has declared a final dividend of Kshs 6.00 per share, bringing the total dividend to Kshs 7.00 per share, an increase of Kshs 1.50 per share compared to the total dividend in the prior year.
Jane Karuku Group Managing Director and CEO of EABL, commented: “We have delivered a solid double-digit topline and operating profit growth in a challenging environment, highlighting the strength of our core business and our ability to capture market opportunities effectively. The results were achieved by leveraging our advantaged portfolio, brilliant commercial execution, and exciting, consumer-led, innovations. Additionally, effective supply productivity allowed us to mitigate some of the impact of cost inflation.
Ms. Karuku added: “Our new microbrewery continues to accelerate our innovation pipeline to tap into the next generation of consumers, while the investment in our digital capabilities has assisted us in serving our customers and consumers more efficiently. Further, we continue to make great progress against our Environmental, Social and Governance goals, surpassing our targets for the year. Looking ahead, we remain committed to delivering consistent and sustainable long-term growth and our F24 results give us confidence that we are well positioned to do so.”
