East African Breweries Limited (EABL) has announced revenues of 55 billion shillings for the year ended June 30th 2012, marking a 24 percent rise from 45 billion made last year. This enabled pre-tax profit to climb 24 percent to 15.2 billion shillings from 12.2 billion in 2011.
Speaking at an investor briefing today morning, EABL Group Managing Director Devlin Hainsworth said, “The strong results were driven by a focused significant investment across our full value chain enabling the delivery of double-digit growth in all our markets underpinned by a steady performance in Kenya and Uganda and a turnaround in Tanzania.”
Alcohol sales in Kenya grew 16 percent in the year on the launch of new brands while in Uganda sales climbed 38 percent mainly on more efficient manufacturing. EABL’s one year old Tanzania operation showed “encouraging results”. International sales also grew 30 percent on a wider distribution network.
Beer sales move up 21 percent supported by a 17 percent growth in sales of the Tusker brand which is EABL’s flagship beer brand.
Mr. Hainsworth, who was appointed EABL Managing Director in June after serving Guinness in Nigeria, said that focused management of costs enabled a 21 percent rise in operating profit to 15 billion shillings despite a high inflation and weak currency environment.
EABL expanded further in the year by rolling out a new brewery in Tanzania in addition to a mash filter in Uganda and a caning line in Kenya. The company also expanded its hold on the East African alcohol beverage market by acquiring 20 percent ownership of Kenya Breweries Ltd.
EABL had began the acquisition mid last year. As part of the deal, KBL ceased Kenyan distribution of SABMiller brands such as Castle Lager, while EABL disposed of its 20 percent stake in Tanzania Breweries Ltd through a public offer.
East African Breweries shares are currently trading at KES 228 per share at the Nairobi Securities Exchange. Last month the shares reached their highest price of more than 5 years at KES 240 per share.