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EABL Records 47 Percent Decline in Profit For 1HY21

East African Breweries Limited (EABL) recorded a 3% decline in net sales to Kes 44.5 billion for the half-year ended December 2020 compared to the same period in 2019. This, however, was a 53% improvement from the previous half-year period, January to June that was significantly impacted by Covid-19 restrictions. However, the pandemic still affected EABL’s business performance with the group recording a 47% decline in profit after tax from kes 6.7 billion in 2019 to kes 3.8 billion during the period under review.

Markets Net Sales Highlights for the Financial Year 2020:

KenyaDeclined 10% compared to the same period in 2019. The decline was attributed to the Covid-19 containment measures that saw continued closure of bars and a ban on alcohol sale in restaurants in the first quarter.

Tanzania: Grew 17% compared to the same period in 2019. EABL attributed the growth to broad-based growth across all categories. Beer net sales grew 17% with strong growth from the ongoing success of the Serengeti.

Uganda: Grew 13% compared to the same period in 2019. The growth was driven by leveraging wholesale channels, enlisting new selling points at mini-shops, home deliveries and e-commerce partnerships.

However, the gross margin showed a strong recovery at 43% during the financial period ended 30 December 2020, as compared to 38% that was recorded in the period January to June.

As a result of the challenges brought about by the ongoing pandemic, EABL said they had initiated Programme called Raising the Bar Programme that helps pubs & bars recover from the Covid-19 disruptions. This constitutes hygiene kits, permanent sanitiser dispenser units, and projection screens for bars to comply with reopening protocols & to deliver the required hygiene standards.

The group has expressed optimism of growing stronger this year with Jane Karuku, EABL Group MD & CEO saying “we will continue to emerge stronger as a business. This will be done through the recovery of the business, investing smartly, having a culture of speed and agility, increasing productivity and enhancing our reputation”.

The board did not recommend an interim dividend payment due to the uncertain conditions brought by the prevailing pandemic.

 

Read also: EABL Records Decline in FY2020 to 7Bn as COVID-19 Impacts Performance