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EABL posts 16% growth in profits

By Vision Reporter

Added 29th August 2011 03:00 AM

EAST African Breweries (EABL) net sales grew by 16%, while profits were up by 10% above the prior year, the regional brewer said in its half-year results released over the weekend.

EAST African Breweries (EABL) net sales grew by 16%, while profits were up by 10% above the prior year, the regional brewer said in its half-year results released over the weekend.

By VISION REPORTER

EAST African Breweries (EABL) net sales grew by 16%, while profits were up by 10% above the prior year, the regional brewer said in its half-year results released over the weekend.

Turnover grew by 16% to sh1.26 trillion over last year’s turnover of sh1.084 trillion. Profit after tax was sh252b, representing a 2% growth over prior year.The board has recommended a final dividend of sh175, which together with an interim dividend of sh70 brings the total dividend payout to sh245) per share.

“Despite a very challenging environment on all fronts, the business delivered very encouraging results, with growth of key brands Tusker, BELL and Guinness and an impressive uplift in our spirits performance during the year. We have strengthened the business and increased investment in our brands, our people, our distribution network and our supply business,” Seni Adetu, the group managing director and the EABL chief executive officer, told an investor briefing in Kampala.

Adetu said EABL innovated with new packaging for its legendary regional brand Tusker Lager and in Uganda with BELL Lager, which contributed to refreshed consumer awareness and net sales growth.

“In addition , increased marketing spend behind great activation platforms such as Tusker Project Fame and Guinness Football Challenge led to good growth of Tusker and Guinness in Kenya, while Senator benefitted from an expansion in the distribution footprint.

He said in Kenya, while overall consumer confidence was shaken by introduction of the Alcohol Drinks Control Act , the company nonetheless grew sales by 8%.

Uganda delivered a solid performance in the second half as a result of a new-look bottle, improved product availability and operating efficiencies with Bell Lager reinforcing its leadership position in the Ugandan market and Senator delivering 28% growth.

The addition of Serengeti Breweries Ltd to the EABL stable has added three operational brewery plants situated in the Tanzanian towns of Dar-es-Salaam, Moshi and Mwanza.

“As a result of the acquisition and with investment in integration and systems upgrade, the group is well poised to consolidate its position in the Eastern Africa region in the alcoholic beverage market. The Company is now in its final stages of relinquishing its 20% stake in Tanzania Breweries Limited through a public offering.

EABL posts 16% growth in profits

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