Expansion drive spur EABL performance

Geographical expansion, establishment of new brands and increased consumption of spirits lifted East African Breweries Limited (EABL) performance posting a 24 per cent increase in revenues to Shs1.6 trillion (Kshs 55.5 billion) for the period ended 30 June 2012. The beer maker posted growth despite a challenging macro-economic environment, characterised by high inflation, sharp interest rate hikes, foreign exchange volatility, reduction in disposable incomes and instabilities in the South Sudan markets. “In the first half, we registered strong results but slowed down in the second half. For the full year, we have had robust results driven by dedicated investment across our full value chain that has enabled the delivery of double digit growth in all our markets,” Mr David Bagenda, the finance director of Uganda Breweries Limited a subsidiary of EABL told Daily Monitor shortly after the results were released. Uganda recorded strong sales growth of 38 per cent mainly driven by investments in brands and improved manufacturing efficiencies. Kenya had a 16 per cent increase in its net sales supported by new brand launches, investment in route to market and increased growth of its spirits. Tanzania’s Serengeti breweries ended its first year under EABL group with strong results while EABL regional that includes new markets such as Rwanda, and South Sudan grew by 30 per cent as a result of distributor network expansion. The group’s operating profits also increased by 21 per cent, profits before tax grew by 24 per cent, while profits attributable to shareholders stood at Ksh 10.6 billion, representing a 45 per cent growth over the previous year. A total dividend of Shs258 (Ksh8.75) was recommended.Growth by brandBrand GrowthSenator Lager 53%Serengeti Lager 49%Guiness 23%Tusker Lager 17%Bell Lager 11%Spirit 47%

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Expansion drive spur EABL performance