The reopening of bars late last year has seen East African Breweries Ltd (EABL) post a 137 percent uptick in profit to book Kes8.7 billion profit in the six-month period ended December 31.
The higher profits have been boosted by a recovery in sales with the regional brewer net revenues going up by 23.5 percent to close at Kes54.9 billion from Kes44.5 billion previously.
The company attributed the jump in sales to investment behind brands and channel innovation in response to changing consumer behaviour.
“EABL’s performance for the half-year ended 31 December 2021 demonstrates a strong recovery from the impact of Covid-19 pandemic that affected the last two years,” the brewer notes in a statement.
Regionally, the firm’s Kenya, Uganda, and Tanzania revenue surged 27 percent, 18 percent, and 15 percent respectively owing to easing Covid curbs compared to a similar period in 2020 at the onset of the pandemic.
The firm’s capital expenditure grew by 51 percent to Kes6.2 billion compared to a similar half in 2020 largely due to capacity expansion in its Tanzania and Uganda units.
Net debt eased to Kes34.7 billion from Kes40.7 billion in December 2020 on account of rising profits and debt management.
In the period, EABL raised Kes11 billion from the bond market that it plans to funnel to capital expenditure as well as refinance existing debt.
In the half, EABL’s earnings per share went up by 312 percent. The board has recommended an interim dividend of Kes3.75 per share payable to registered shareholders at the close of business on February 28.
The company last paid dividend of Kes3 per share for the six-month period ended December 2019.