EABL profits hurt by rising production costs
23 August 2013, 11:28
Nairobi - Full-year pretax profit at East African Breweries (EABL) fell more than a quarter as expected as higher costs for energy and distribution outweighed increased revenues.
The brewer, controlled by Britain's Diageo Plc, on Friday posted profit for the year to the end of June of 11.11 billion shillings on revenue up 6 percent to 59.06 billion shillings.
The cost of sales rose 10 percent to 31.56 billion shillings, blamed by Tracey Barnes, EABL's Group Finance Director, on higher distribution and energy costs and depreciation.
The brewer, which also operates in Tanzania and Uganda, warned in July its profit would drop by more than a quarter due to higher financing costs from an acquisition.
Barnes said revenue growth had slowed due to softer market conditions in Uganda and Tanzania. The brewer's basic earnings per share dropped to 8.83 shillings from 13.46 in the year ended June 2012.
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