EABL sees earnings boosted by rising beer and spirit sales
13 February 2015, 10:40
Nairobi - Rising beer and spirit sales in Tanzania and Uganda helped East African Breweries (EABL) post a 12 percent rise in first-half pretax profit, the brewer said on Thursday.
Profit for the firm, controlled by Britain's Diageo, grew to 6.8 billion shillings ($74 million) in the six months through December 2014, the brewer said, adding profits were helped by lower fuel costs and improved production efficiency.
Revenue was up 9 percent to 34.77 billion shillings, driven by a 17 percent growth in net sales in Tanzania and a 7 percent rise in sales in Uganda. Sales in Kenya were up 3 percent.
The company said its business in South Sudan, the world's newest nation which has experienced unrest since its formation, also contributed to improved performance.
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“Despite currency challenges, our export markets, supported by the establishment of the local depot in Juba, delivered over 100 percent growth,” Group Managing Director Charles Ireland said in a statement on the company's website.
EABL's basic earnings per share rose to 5.24 shillings from 4.99 shillings a year ago, the brewer said.
Its shares are up 5.8 percent so far this year, in line with a move higher by the broader market, and closed at 326 shillings on Thursday.
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