EABL full year net sales hits KSh 109.4 billion as growth hits double digit

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  • EABL has reported KSh 109.4 billion in net sales for the full year ended 30 June 2022, representing a 27 per cent growth compared to the same period last year
  • The group attributed the performance to double-digit growth across all its markets and categories owing to an improved operating environment
  • Kenya delivered 30 per cent net sales growth, mainly on the back of strong beer recovery and continued growth in spirits – fuelled by premium and upper mainstream segments

East African Breweries PLC (EABL) has reported KSh 109.4 billion in net sales for the full year ended 30 June 2022, representing a 27 per cent growth compared to the same period last year, as the business marks 100 years of operations in the region.

The group attributed the performance to double-digit growth across all its markets and categories owing to an improved operating environment as outlets reopened and sustained investment in marketing and commercial activities.

EABL navigated rising inflation and increased excise taxes through strategic pricing and effective cost management to deliver its highest profit in 5 years of KSh 15.6 billion, up 124 per cent.

EABL delivered a strong beer performance, up 27 per cent, aided by the beer recovery in Kenya. The Group’s spirits category was up 26 per cent, boosted by a 27 per cent growth in mainstream spirits.

EABL Group MD and CEO Jane Karuku said that EABL had delivered another set of consistently strong results across key metrics.

“These results reflect the high-performance culture we have created across the business, the rigorous execution of our strategy, the strength of our portfolio across categories and our agility in responding to emerging trends and insights.”

Performance per country

According to the brewer, Kenya delivered 30 per cent net sales growth, mainly on the back of strong beer recovery and continued growth in spirits – fuelled by premium and upper mainstream segments.

Meanwhile, Uganda’s net sales grew by 24 per cent, supported by the market’s excellent route to consumer execution and brand building. Uganda also benefited from accelerated margin expansion through strategic pricing actions.

In Tanzania, net sales grew by 21 per cent, driven by the consistent growth of the Serengeti Trademark and an expanded brand portfolio. Local production of spirits helped deliver further incremental growth, cementing the business as a total beverage alcohol player.

The Group CEO said that although these results show the company is now ahead of its pre-COVID growth trajectory, the challenging macro-economic environment, volatile tax and regulatory policy will continue to impact their business.

“Yet, our sharp focus on executing against our strategy, supported by an external focus, data-led insights and a culture of everyday efficiency, will help us navigate current and future headwinds. As we celebrate 100 years of EABL’s operations in the region, we believe we are well positioned to deliver sustainable long-term growth.”

EABL has commissioned the construction of a microbrewery at Ruaraka, Nairobi, that will serve as an innovation centre for alcoholic and non-alcoholic beverages.

The facility next to the Tusker brewery is projected to cost KSh 1 billion and will consist of a microbrewery, taste room, taproom, and a flagship store.

EABL profit drop 11% on Uganda taxes, weak Kenyan market

The construction was commissioned by Karuku, who said the facility would be open to the public by December to celebrate the 100-year birthday of the business’s first beer “Tusker”. EABL was established in December 1922 and this investment is part of the company marking a year-long celebration of its centenary.

The microbrewery will serve as a brand home for the company’s flagship beer, Tusker, bringing to life the Tusker experience and imprinting the brand in the hearts and minds of present and next generations, fuelling the next 100 years of growth for the business.

In addition, it will serve as an innovation centre that will provide an indispensable platform to nurture upcoming talent in brewing and liquid development in Kenya, East Africa, and the entire Diageo.

“Through this facility, EABL seeks to shape the future of the alcoholic beverage sector in the region through the development and release of craft and novelty beers. We will target our beer lovers, curious millennials and tourists who visit us, offering them exciting drink experiences that will demonstrate our mastery in beer brewing honed over the 100-year journey as they consume our products either on-site or through their preferred vendors.”

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Wanjiku Njuguna is a Kenyan-based business reporter with experience of more than eight years.

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