EABL posts Ksh8.1 billion profit after tax

East Africa Breweries Limited (EABL) has delivered impressive financial results for the period, showcasing resilience in the face of economic challenges. The company reported a net revenue of Ksh67.9 billion, marking a 2 per cent increase from the previous year, with a volume growth of 1 per cent. Profit after tax saw a remarkable 20 per cent growth, reaching Ksh8.1 billion. These positive figures were supported by strategic financial measures implemented by the company's leadership. Risper Genga Ohaga, Group Chief Financial Officer, shed light on the company's performance during an insightful interview with CNBC Africa's Flora Limukii. Through prudent cost management, reduction of debt, and leveraging favorable currency exchange rates, EABL was able to bolster its bottom line and achieve significant profit growth. The appreciation of the Kenyan shilling against the dollar played a pivotal role, contributing to an exchange gain of Ksh1.2 billion compared to the previous year's Ksh2.3 billion. Additionally, the company's proactive approach in reducing debt by Ksh5 billion further reduced interest costs, saving Ksh0.5 billion. This combination of factors, including revenue growth, cost management, and leveraging macroeconomic benefits, propelled EABL's profit to Ksh8.1 billion. Despite the challenges posed by inflation and excise increases, EABL witnessed growth across its key markets - Kenya, Tanzania, and Uganda. At an organic level, all three markets experienced growth, with Kenya at 9 per cent, Tanzania at 16 per cent, and Uganda at 3 per cent. While the growth translated to 2 per cent when converted to Kenyan shillings, it underscored the company's robust performance. The sustained growth in categories such as beer and spirits, with growth rates of 1 per cent and 7 per cent respectively, further contributed to EABL's positive sales figures. Moreover, achieving a 1 per cent volume growth, especially in challenging market conditions, highlighted the company's resilience and strategic positioning. EABL's commitment to shareholder value was evident in the declaration of an interim dividend of 2.50 Kenyan shillings per share, reflecting a dedication to sustainable profitability. The company's dividend policy aims to distribute around 70 per cent of profit after tax to shareholders, emphasizing transparency and long-term value creation. Emphasizing a trajectory towards sustainable growth, EABL prioritized debt reduction, lowering its debt levels by Ksh4.9 billion. The company's strategies included enhancing cash generation, optimizing capital expenditure, and streamlining operational expenses while investing in brand growth. Looking ahead, EABL remains focused on maintaining a net debt to EBITDA ratio that ensures financial stability and supports future investment opportunities. The company's commitment to environmental, social, and governance (ESG) considerations is ingrained in its core strategy. With pillars focusing on diversity and inclusion, sustainability practices, and responsible drinking initiatives, EABL continues to align its business operations with societal and environmental responsibilities. Despite economic uncertainties and geopolitical shifts, EABL remains optimistic about its outlook. Challenges posed by consumer purchasing power constraints are countered by a proactive approach to meeting consumer needs and adapting to market dynamics. While uncertainties loom on the global and regional fronts, EABL remains steadfast in executing its strategic vision and maximizing opportunities for sustainable growth.