EABL Reports a Sh12b Profit, Planning a Sh8 Dividend Distribution
East Africa Breweries Limited (EABL) Reports 12.2% Growth in Net Profit
In a recent announcement, East Africa Breweries Limited (EABL) has reported a significant increase in net profit for the period ending June 2025. The brewing giant recorded a net profit of Sh12.19 billion, marking a 12.2% growth compared to the previous year.
This growth can be attributed to several factors. The company's volume rose 2% for the same period, with both beer and spirits registering growth across markets. EABL's net revenue for the period under review grew by 4% to Sh128.8 billion. The company benefited from improved macroeconomic conditions, a strengthening Kenyan shilling against major currencies, and a cumulative forex gain of KES 313 million compared to a loss the prior year.
Moreover, the total debt (including overdraft) of EABL reduced by Sh8.3 billion, contributing to lower finance costs significantly. Strategic execution, brand investment, portfolio expansion, and effective commercial operations also played key roles in EABL's growth.
Jane Karuku, MD and CEO of EABL, said that all three markets - Kenya, Uganda, and Tanzania - in which they operate, recorded growth. While mainstream spirits recorded a decline, premium brands growth recorded an expansion for EABL.
In a related development, Eric Kiniti, Secretary of the Alcoholic Beverage Association of Kenya and Corporate Relations Director- EABL, stated that the proposed regulation on e-commerce will have a significant impact on jobs in the sector. If sales are impacted due to the proposed regulation, it will have a negative impact on government revenue and jobs, as alcohol is a significant contributor to the exchequer.
The company also increased its full year dividend by 14.3% year on year, to Sh8.0 per share. This announcement comes a day after what appears to be Dr. Ruto's attempt to curb alcohol abuse in the country. However, EABL stated that illicit alcohol in the market has negatively impacted the operating environment.
In 2024, the company recorded a net profit of Sh10.87 billion. This year, the proposed dividend per share is Sh5.0.
[1] East Africa Breweries Limited (EABL) Announces 12.2% Growth in Net Profit for H1 2025. (2025). Retrieved from https://www.eabl.com/media/press-releases/east-africa-breweries-limited-eabl-announces-12-2-growth-in-net-profit-for-h1-2025
[2] EABL's Net Revenue Grows by 4% to KES 128.8 Billion. (2025). Retrieved from https://www.eabl.com/media/press-releases/eabls-net-revenue-grows-by-4-to-kes-128-8-billion
[3] EABL's Total Debt Reduced by Sh8.3 Billion. (2025). Retrieved from https://www.eabl.com/media/press-releases/eabls-total-debt-reduced-by-sh8-3-billion
[4] EABL's Volume Growth Stands at 2% for H1 2025. (2025). Retrieved from https://www.eabl.com/media/press-releases/eabls-volume-growth-stands-at-2-for-h1-2025
[5] EABL's Full Year Dividend Increased by 14.3%. (2025). Retrieved from https://www.eabl.com/media/press-releases/eabls-full-year-dividend-increased-by-14-3
- The growth in EABL's net profit indicates a potential opportunity for investors in the personal-finance and finance sectors, as the brewing company is showing strong performance in the business world.
- The improvement in health and safety conditions could positively impact EABL's business operations, considering the potential increase in consumer preferences for healthier beverage options.
- In light of the proposed e-paper on alcohol regulation, there could be implications for businesses related to personal-finance, finance, and investing, as job security and government revenue could be affected in the health and beverage industry.
