EABL more than doubles its half year profit to Ksh.8.7B on recovering sales

The earnings through six months to December 31, 2021, are 130.4 per cent higher than the Ksh.3.8 billion profit posted in the preceding half-year stage.

The surge in profitability is attributable to recovering sales with EABL’s net revenues in the period jumping by 23.5 per cent to Ksh.54.9 billion from Ksh.44.5 billion previously.

Sales in Kenya which reopened bars in June last year as part of eased COVID-19 restrictions rose by 27 per cent ahead of Uganda which yielded an 18 per cent jump in turnover and Tanzania at 15 per cent.

EABL further attributes the higher turnover to continued innovation which was on the back of Ksh.6.2 billion in new capital expenditure (CAPEX) over the six months.

“During this pandemic, our strategic clarity enabled us to maintain focus on brand-building, active portfolio management, consumer-led innovation, and digital transformation, all executed through extraordinary efforts and resilience of our people,” noted EABL Managing Director Jane Karuku.

At the same time, the firm kept its overall expenses unchanged at Ksh.13.6 billion to include selling and administrative expenses on the back of a 31.5 per cent slash to other expenses.

EABL’s cost of sales meanwhile grew behind the jump in sales turnover at 13.1 per cent to Ksh.28.4 billion from Ksh.25.1 billion a year prior.

Further, EABL has reduced its net debt to Ksh.34.7 billion from Ksh.40.7 billion in a period that saw the firm issue a Ksh.11 billion medium-term note to refinance part of its existing debt portfolio.

EABL has expressed cautious optimism on future growth as it expects improving consumer incomes and the recovery of on-trade (on location) trading and the resilience of its off-trade to sustain the growth in sales.

The board of EABL has recommended an interim dividend of Ksh.3.75 per share to be paid on or before April 27.

This is for a total shareholder pay-out of Ksh.2.97 billion after the doubling of its basic earnings per share to Ksh.8.45 from Ksh.2.71 previously.