EABL registers a 2% growth in profit after tax to Shs 188bn

Shareholders of the regional beer maker, East African Breweries Limited (eabl) are set to receive a dividend of Kshs 2 (Shs 68) per share even as the company recorded a 2% growth in profit after tax to Shs 188bn in the second half of the year ending December 31, 2016 compared with the previous year.

This is the same amount of dividend that the company’s shareholders received during the same period in 2015. EABL’s performance was driven by better performance of five out of eight product segments and significant productivity savings.

“The performance has been on the backdrop of significant excise increase in Kenya last year and tough economic and operating conditions elsewhere in the region,” said Joyce Munene, the EABL’s Group Company Secretary.

Last year, Kenya amended the Alcoholics Drinks Control Act, 2010, repealing Section 68 A that previously granted the remission of excise duty at the rate of 90% on beer made from sorghum, millet or cassava grown in Kenya.

Munene said while Kenya delivered a flat net sales with double digit growth in spirits and Senator keg, which offset the impact of price increase on bottled beers, Uganda registered a 7% growth in net sales driven by a good performance from emerging beer and spirits.

On the other hand, Tanzania experienced a 7% drop in net sales despite double digit growth and triple digit in reserve spirits.

Munene added that the adverse foreign exchange movements and impact of exercise tax increase resulted in a 6% decline in reported net sales during the period.