Reopening of Bars Reason For Huge EABL Profits
The East African Breweries Plc (EABL) has doubled its half-year profit to Ksh.8.7 billion from Ksh.3.8 billion profit posted in the preceding half-year stage. The net revenues rose by 23.5 percent to Ksh.54.9 billion from Ksh.44.5 billion recorded previously.
The manufacturer attributed the surge in profitability to the recovering sales made after the COVID-19 restrictions were eased allowing bars to reopen. The company further attributes the higher turnover to continued innovation which was on the back of Ksh.6.2 billion in new capital expenditure (CAPEX) over the six months.
“During this pandemic, our strategic clarity enabled us to maintain focus on brand-building, active portfolio management, consumer-led innovation, and digital transformation, all executed through extraordinary efforts and resilience of our people,” said EABL Managing Director, Jane Karuku.
The giant firm kept its overall expenses unchanged at Ksh.13.6 billion to include selling and administrative expenses on the back of a 31.5 percent slash to other expenses. EABL’s cost of sales meanwhile grew behind the jump in sales turnover at 13.1 percent to Ksh.28.4 billion from Ksh.25.1 billion a year prior.
Further, EABL has reduced its net debt to Ksh.34.7 billion from Ksh.40.7 billion in a period that saw the firm issue a Ksh.11 billion medium-term note to refinance part of its existing debt portfolio. The board has recommended an interim dividend of Ksh.3.75 per share to be paid on or before April 27. This is for a total shareholder pay-out of Ksh.2.97 billion after the doubling of its basic earnings per share to Ksh.8.45 from Ksh.2.71 previously.