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EABL records Shs242 billion profit after tax

Mr Andrew Cowan, the EABL Group managing director. COURTESY PHOTO

What you need to know:

  • The growth was stronger than the one recorded for the year ended June 2018, which recorded a 0.3 per cent drop in net sales.
  • According to EABL, Uganda and Kenya net sales grew by 12 per cent while Tanzania increased by 26 per cent, assisted by growth in sales of beer, spirits and other innovations.
  • Mr Andrew Cowan, the EABL Group managing director, said in the statement the company had delivered broad-based growth across regions.

New innovations in the spirits sector, especially for Uganda Waragi have propelled good growth for East African Breweries Limited (EABL) with the brewer recording increased profits for the half year ended December 31.

EABL, which has a number of brands in Uganda such as Guinness, Tusker Lite, Bell and Uganda Waragi, registered improved growth with net beer sales growing by 11 per cent in the period.

This was driven by growth in the premium and mainstream spirits such as Uganda Waragi. Spirits’ net sales grew by 16 per cent.

The brewer posted a group profit of Shs242.5b profit after tax for the period ended December 31.

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The performance was attributed to increased sales across all regions, especially for new product innovations in the Uganda Waragi unit.

In a statement released at the weekend, EABL announced a 33 per cent growth in profit after tax increasing to Shs242.5b for the period ended December 2018 compared to Shs181b in the same period in 2017.

“Net sales grew 13 per cent. Growth was broad-based across segments and regions,” the statement reads in part.

The growth was stronger than the one recorded for the year ended June 2018, which recorded a 0.3 per cent drop in net sales.

According to EABL, Uganda and Kenya net sales grew by 12 per cent while Tanzania increased by 26 per cent, assisted by growth in sales of beer, spirits and other innovations.

Mr Andrew Cowan, the EABL Group managing director, said in the statement the company had delivered broad-based growth across regions.

“There is still a lot more to do across all our markets, but this half-year performance proves that we can get there if we continue to focus on strategic execution across our business,” he said.

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