EABL Full Year Profits Down By 39% To KSh 7 Billion

By Soko Directory Team / July 30, 2020 | 3:51 pm




East African Breweries Limited (EABL) recorded a 9 percent decline in net sales for the financial year ended 30 June 2020, as first-half growth of 10 percent was offset by a 29 percent decline in the second half.

The second half decline was due to the impact of the Covid-19 pandemic which saw containment measures implemented across East Africa from late March 2020.

The pandemic impacted EABL’s business performance after three consecutive double-digit halves of growth, with profit for the year declining by 39 percent to 7 billion shillings from 11.5 billion shillings in the previous year.

According to EABL, the Kenyan market declined 14 percent versus the prior year. First-half growth of 8 percent was offset by the second-half decline of 37 percent, as the partial lockdown from March to June led to the closure of bars and restaurants.

Mainstream and value spirits remained resilient and registered 2 percent growth versus prior year as the category benefitted from a shift of outlet consumption occasions to at-home consumption.

The Ugandan market declined 5 percent versus the prior year, as first-half growth of 10 percent was offset by the impact of a total lockdown from March to June resulting in a 21 percent decline in sales in the second half.

The Tanzanian market grew 14 percent versus the prior year, as first-half growth of 19 percent slowed down to 10 percent in the second half as Government restrictions in response to Covid-19 were limited.

Double-digit growth in premium and mainstream beer segments and improved spirits performance supported a strong delivery for the financial year.

EABL Group MD and CEO, Andrew Cowan, said: “During this unwelcome pandemic, our top priority has been to safeguard the health and well-being of our people and support our communities while taking necessary action to protect our business. Across the markets, we have tracked changes in consumer behavior and repurposed our execution plans in trade to continue serving our consumers where safe and possible to do so.”

Mr. Cowan said EABL focussed on managing working capital tightly in the last quarter, reducing discretionary expenditure and reallocating resources such as advertising and promotion (A&P) spend to new and emerging channels in order to serve our consumers safely.

EABL has made a significant contribution through trade and community initiatives across the region. To help East African communities emerge from the effects of the pandemic, EABL has funded the provision of hand sanitizers distributed to frontline health workers and vulnerable communities to the tune of 70 million shillings. Further, the company donated Kshs 50 million to Kenya’s Covid-19 Emergency Fund, bringing the total contribution towards the pandemic to Kshs 120 million.

In Uganda, UBL donated hospital mattresses, hand-washing stations, and fuel to enable frontline health workers to alleviate situations in healthcare centers. And in Tanzania, SBL delivered a hygiene awareness program and donated hand-sanitizers to help combat the spread of the pandemic.

In view of the pandemic’s impact on bar owners across East Africa, EABL is committing KShs 500 million to support the recovery of on-trade outlets in Nairobi, Kampala, and Dar es Salam as part of Diageo’s $100 million ‘Raising the Bar’ global fund. This funding will be used to support the implementation of hygiene measures, provision of practical equipment, and provision of free digital support and training to enable outlets to transform how consumers will be served when bars reopen.

Going forward, our market teams have put in place robust plans to help us emerge stronger from this crisis once the measures are eased across our markets. We will continue to execute with discipline and invest prudently to ensure we are strongly positioned for a recovery in consumer demand,” Mr. Cowan said.

In recognition of the uncertainty in the external environment in the face of the Covid-19 pandemic and the need to conserve cash to support the business, the Board of Directors does not recommend a final dividend. Consequently, the interim dividend of KShs 3 per share paid in April 2020 will be the full and final dividend for the year.





About Soko Directory Team

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

View other posts by Soko Directory Team


More Articles From This Author







Trending Stories










Other Related Articles










SOKO DIRECTORY & FINANCIAL GUIDE



ARCHIVES

2020
  • January 2020 (272)
  • February 2020 (310)
  • March 2020 (390)
  • April 2020 (321)
  • May 2020 (336)
  • June 2020 (329)
  • July 2020 (335)
  • August 2020 (71)
  • 2019
  • January 2019 (253)
  • February 2019 (216)
  • March 2019 (285)
  • April 2019 (254)
  • May 2019 (272)
  • June 2019 (251)
  • July 2019 (338)
  • August 2019 (293)
  • September 2019 (306)
  • October 2019 (313)
  • November 2019 (362)
  • December 2019 (320)
  • 2018
  • January 2018 (291)
  • February 2018 (219)
  • March 2018 (278)
  • April 2018 (225)
  • May 2018 (238)
  • June 2018 (178)
  • July 2018 (256)
  • August 2018 (249)
  • September 2018 (256)
  • October 2018 (287)
  • November 2018 (284)
  • December 2018 (185)
  • 2017
  • January 2017 (183)
  • February 2017 (194)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (205)
  • July 2017 (190)
  • August 2017 (195)
  • September 2017 (186)
  • October 2017 (235)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (165)
  • February 2016 (165)
  • March 2016 (190)
  • April 2016 (143)
  • May 2016 (245)
  • June 2016 (182)
  • July 2016 (271)
  • August 2016 (248)
  • September 2016 (234)
  • October 2016 (191)
  • November 2016 (243)
  • December 2016 (153)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (166)
  • April 2015 (108)
  • May 2015 (116)
  • June 2015 (120)
  • July 2015 (148)
  • August 2015 (157)
  • September 2015 (188)
  • October 2015 (169)
  • November 2015 (173)
  • December 2015 (207)
  • 2014
  • March 2014 (2)
  • 2013
  • March 2013 (10)
  • June 2013 (1)
  • 2012
  • March 2012 (7)
  • April 2012 (15)
  • May 2012 (1)
  • July 2012 (1)
  • August 2012 (4)
  • October 2012 (2)
  • November 2012 (2)
  • December 2012 (1)
  • 2011
    2010
    2009
    2008
    2007
    2006
    2005
    2004
    2003
    2002
    2001
    2000
    1999
    1998
    1997
    1996
    1995
    1994
    1993
    1992
    1991
    1990
    1989
    1988
    1987
    1986
    1985
    1984
    1983
    1982
    1981
    1980
    1979
    1978
    1977
    1976
    1975
    1974
    1973
    1972
    1971
    1970
    1969
    1968
    1967
    1966
    1965
    1964
    1963
    1962
    1961
    1960
    1959
    1958
    1957
    1956
    1955
    1954
    1953
    1952
    1951
    1950