East African Breweries Limited (EABL) recorded 15% growth in revenue to Kshs 86.0 billion for the year ended June 2021. Profit before tax was up 2% to Ksh 10.9 billion. The slower profit growth rate was driven by the impact of cost inflation, adverse foreign exchange and tax charges.
EABL’s performance was delivered on the back of a tough operating environment. The company responded with agility, leveraging changing consumer behaviour and channel shifts, especially around e-commerce, home delivery and take-home trade.
Markets Highlights for the Financial Year:
Kenya: Kenya Breweries Limited (KBL) registered 10% year on year revenue growth, with H2 growing 45% off-setting a 10% decline in H1. Performance was driven by expanding and adapting the product portfolio to meet emerging channels and new consumer occasions while continuing to invest ahead on our strategic brands.
Uganda: Uganda Breweries Limited (UBL) revenues grew 33% year on year, with beer and spirits both recording double-digit growth. Growth was driven by the business’ agility in response to the changing consumer shifts and emerging channels. The business also invested in capacity expansion to support sales growth in line with EABL’s strategy.
Tanzania: Serengeti Breweries Limited (SBL) revenues were up 15%, with beer and spirits both registering double-digit growth. The business sustained strong growth through investment behind the brands and capacity expansion for both beer and local spirits production.
EABL’s profit after tax for the period declined 1% to Kshs 7 billion mainly impacted by cost inflation, tax and foreign exchange impact. Further, the COVID-19 related tax reliefs in Kenya on corporation tax and VAT ended in December 2020, resulting in higher tax charges for the year as the rates reverted back to pre-COVID levels.
The company’s key priority has been to ensure the safety and well-being of its people by providing necessary tools and resources to ensure they are adequatley enabled to work safely.
EABL Group Managing Director and CEO, Jane Karuku, said: “Through Fiscal 2021, the pandemic continued to impact the business negatively across East Africa due to the restrictions in Kenya and Uganda and the general decline in disposable incomes in the region. We responded to the new realities by continuing to invest behind the brands, expanding capacity and sustaining productivity initiatives to manage our cost base to ensure we emerge stronger.”
Looking into the future, Mrs Karuku added: “We are cognisant of the fact that the uncertainty posed by the pandemic will continue. However, we are confident that our strategy is working and will continue to focus on business recovery to grow top line and recover margin.”