COVID-19 downs EABL Profits by 39 percent

Closure of bars and stringent measures against sale of alcohol have left beer giant  East African Breweries Limited a 39 percent profit hole, for the financial year ended 30 June 2020. This comes on the back of government of Kenya grappling to deal with the Covid – 19 pandemic that is alarmingly spilling out of control.

EABL’s regional business performance indicated a decline to Sh7 billion from Sh11.5 billion in profits year on year, with net sales for the second half of 2020 dropping by 29 percent.

Response to the pandemic seems to have made all the difference, with Uganda and Kenya recording losses while Tanzania sales grew by 14 percent. Net sales in the Kenya and Uganda operations fell by 14 and 5 percent respectively compared to 2019.

“Double-digit growth in premium and mainstream beer segments and improved spirits performance supported a strong delivery for the financial year,” a statement from the firm said with regard to Tanzania performance.

On the back of this year’s financial results, the company said that shareholders will not receive their final dividend so as to enable the company hold on to maintain cash reserves in keeping with the new strategy. The interim dividend of Shs 3 per share paid in April 2020 will now be the final dividend for the year

“In recognition of the uncertainty in the external environment in the face of the Covid-19 pandemic and the need to conserve cash to support the business, the Board of Directors do not recommend a final dividend,” the firm said.

and widespread prohibition of the sale of alcohol have dealt beer giant  East African Breweries Limited a 39 percent profit blow for the financial year ended 30 June 2020.

EABL’s regional business performance indicated that sales declined to Sh7 billion from Sh11.5 billion year on year, with net sales for the second half of 2020 dropping by 29 percent.

Response to the pandemic seems to have made all the difference, with Uganda and Kenya recording losses while Tanzania sales grew by 14 percent. Net sales in the Kenya and Uganda operations fell by 14 and 5 percent respectively compared to 2019.

“Double-digit growth in premium and mainstream beer segments and improved spirits performance supported a strong delivery for the financial year,” a statement from the firm said with regard to Tanzania performance.

On the back of this year’s financial results, the company said that shareholders will not receive their final dividend so as to enable the company hold on to maintain cash reserves in keeping with the new strategy. The interim dividend of Shs 3 per share paid in April 2020 will now be the final dividend for the year

“In recognition of the uncertainty in the external environment in the face of the Covid-19 pandemic and the need to conserve cash to support the business, the Board of Directors do not recommend a final dividend,” the firm said.

Leave a Reply

Your email address will not be published. Required fields are marked *