[2008-09-01]  EABL profits jump to Sh12.3 billion
East African Breweries Limited (EABL) on Friday announced a pre-tax profit of Sh12.3 billion for the financial year ended June 30.

The brewer also announced a Sh5 billion expansion plan next year.

The increase of 16 per cent in the earnings compare to Sh10.6 billion registered over the last financial year.

The Group’s net turnover went up 26 per cent to Sh32.5 billion compared to Sh25.9 in the last financial year.

Group Managing Director Gerald Mahinda, attributed the good performance to aggressive investments in brands, people and capital expenditure, which included spending Sh3 billion strengthening capacity.

Mahinda was speaking during an investor briefing on the end year results in Nairobi on Friday. Also present was the newly appointed Group Finance Director Peter Ndegwa.

EABL directors have recommended a final dividend of Sh5.65 per share. This in addition to Sh2.40 interim divided paid early in the year would total to Sh8.05 per share for the year, representing a 10 per cent divided growth over last year.

Total dividend payment for the year will be Sh6.4 billion compared Sh5.8 billion last year.

Mahinda said the results had been achieved despite continuing economic challenges across the region, driven by increased fuel prices and inflation.

"Despite minor setbacks during the sad chapter in our country when we witnessed post-poll violence in December and January, all our business have performed well and have sustained our market shares," he said.

He said EABL made calculated investments in technology and upgrades, including a second Mash Filter and two Dual Purpose vessels.

According to the trading results, beer and spirits volumes increased by 16 per cent to 770,000 hectoLitres and 10 per cent to 148,000 9-litre cases respectively while marketing and distribution costs went up by 46 per cent to Sh680 million.


Source: (c) 2008 The Standard