EABL reports flat growth of Ksh8.7bn

East African Breweries Limited (EABL) has weathered a challenging macroeconomic environment and steep excise tax impact in Kenya to report a flat growth of Ksh8.7 billion for the half-year ended 31st December 2022. The net sales of Ksh57.3 billion represented a 4% increase compared to the same period last year. EABL's Group Managing Director & CEO, Jane Karuku, highlighted the hurdles faced by the company due to various factors such as food inflation, global challenges like the Russian-Ukrainian war, currency devaluation, and significant tax hikes in Kenya. Despite the challenges, EABL maintained its profit after tax at Ksh8.7 billion and dividend at 3.75, showcasing resilience in the face of adversity. The company's diverse portfolio across countries played a key role in mitigating the impact on its performance, with Uganda posting a stellar 19% growth, Tanzania at 11%, and Kenya declining by 1%. Beer and spirits categories saw mixed performance, with mainstream spirits and premium segments driving growth while the value segment declined. The interview also touched on the issue of illicit alcohol in the market, with Karuku emphasizing the need for strong enforcement by the government and consumer education to combat the problem. The conversation also delved into Diageo's proposed acquisition of a stake in AABL, showcasing confidence in East Africa as a business destination and its potential impact on the Nairobi Securities Exchange. Looking ahead, EABL remains committed to its robust strategy focused on driving growth through its vibrant brand portfolio, innovative approaches, and investment in sustainability and ESG initiatives. The company aims to navigate the challenges of the macroeconomic environment by focusing on cost management and innovation while staying true to its core strengths and values.