EABL Records Strong Growth

East African Breweries Ltd (EABL) has recorded strong growth in its net earnings of 57 per cent over the past year. The firm’s net profit rose from US$73 million to US$115 million as volumes grew 11 per cent and sales increased by 12 per cent. 

While all regional markets recorded an increase in sales, the impressive performance was driven in part by strong growth in its subsidiary in Tanzania, which recorded a 20 per cent increase in sales revenue during the year.  

The Kenyan market remains the company’s most profitable, accounting for 73 per cent of the firms profit. Uganda and Tanzania accounted for 12 per cent and 12 per cent respectively.

EAB continues to invest in capacity improvements in the region. However, it faces a new challenge in the form of increased taxes recently announced by the government. As of September excise duty on spirits will rise by 15 per cent.

In response to the increase the firm’s CEO has indicated that it is counting on growing demand for its Senator Keg beer and scotch whiskey to maintain its healthy balance sheet.