East African Breweries Limited (EABL) faced a 21.0% decrease in its net profit for the full year ending on June 30, 2023, resulting in a figure of Kshs 12.32 billion. Additionally, the listed brewer decided to reduce its dividend payout, with the final dividend per share decreasing to Kshs 5.5 from the Kshs 11.00 paid in the previous financial year.
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The cost of sales saw a notable increase of 10.1%, reaching Kshs 62.2 billion. Despite this, EABL reported net sales of Kshs 110 billion, reflecting a similar revenue performance to the prior year. The company attributed its sluggish financial performance to the high cost of raw materials, steep excise duty hikes, and the weakening Kenyan Shilling. These factors and the impact of price increases on consumer spending hindered the firm’s ability to offset costs through increased prices and cost management initiatives fully.
EABL’s Group volumes experienced a decline of 7% year-on-year, with sales being affected by reduced consumer spending triggered by the higher prices at drinking establishments.
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Despite the challenges caused by global inflation and geopolitical disruptions, which escalated costs and affected consumer spending, EABL’s Group managing director, Jane Karuku, emphasized the company’s resilience. She highlighted that the firm remained focused on delivering value to consumers and stakeholders through execution excellence and operational efficiency.
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