EABL records highest profit in 5 years, here's why

EABL releases its 2022 full year financial results

East African Breweries PLC (EABL) Group CEO Jane Karuku

East African Breweries PLC (EABL) has reported Sh109.4 billion in net sales for the full year ended 30 June 2022, representing a 27 per cent growth compared to the same period last year.

The group’s net sales were boosted by double-digit growth across all its markets and categories, owing to an improved operating environment as outlets reopened, coupled with sustained investment behind marketing and commercial activities.

EABL navigated rising inflation and increase in excise taxes through strategic pricing and effective cost management to deliver its highest profit in 5 years of Sh15.6 billion, up 124 per cent.

EABL delivered a strong beer performance, up 27 per cent, aided by the beer recovery in Kenya. The group’s spirits category was up 26 per cent, boosted by a 27 per cent growth in mainstream spirits.

EABL has delivered another set of consistent strong results across key metrics. These results reflect the high-performance culture we have created across the business, the rigorous execution of our strategy, the strength of our portfolio across categories and our agility in responding to emerging trends and insights,” EABL Group CEO

In Kenya, EABL’s largest market delivered 30 per cent net sales growth, mainly on the back of strong beer recovery and continued growth in spirits – fuelled by premium and upper mainstream segments.

In Uganda, net sales grew 24 per cent supported by the market’s excellent route to consumer execution and brilliant brand building. Uganda also benefited from accelerated margin expansion through strategic pricing actions.

In Tanzania, net sales grew 21 per cent, driven by the consistent growth of the Serengeti Trademark and an expanded brand portfolio.

Local production of spirits helped deliver further incremental growth, cementing the business as a total beverage alcohol player.

Although these results show we are now ahead of our pre-COVID growth trajectory, the challenging macro-economic environment, volatile tax and regulatory policy will continue to impact our business.

"Yet, our sharp focus on executing against our strategy, supported by an external focus, data-led insights and a culture of everyday efficiency will help us navigate current and future headwinds. As we celebrate 100 years of EABL’s operations in the region, we believe we are well positioned to deliver sustainable long-term growth,” Ms Karuku said.

She added that EABL’s Environmental, Social and Governance (ESG) agenda remained a key focus in the year with the finalisation of the Sh5 billion biomass plant being a key milestone.

This facility will help us achieve Net Zero status, reducing our carbon emissions by 42,000 metric tonnes annually. Our water stewardship has continued, as we replenished over 360,000 cubic metres of water during the year across East Africa.

"Our positive drinking efforts have reached over 17 million people, as we continue to focus more sharply on long-term projects aimed at combating underage drinking and encouraging responsible drinking to those in the legal purchase age. We also launched our inaugural and award-winning sustainability report during the year,” she added.

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