East African Breweries PLC (EABL) reported a 12 per cent jump in net profit to Sh12.2 billion for the year ended June 30, 2025, buoyed by higher sales and reduced financing costs.
The group's net sales rose 4 per cent to Sh128.8 billion, despite ongoing macroeconomic challenges across East Africa.
The brewer declared a final dividend of Sh5.50 per share, raising the total dividend payout for the year to Sh8.00 per share, which is 14.3 per cent higher than the previous financial year.
The final dividend is expected to be paid on or about October 28, 2025, to shareholders registered by September 16, 2025.
Dr. Martin Oduor-Otieno, EABL's Group Chairman, said the business remained resilient throughout the year.
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“Our business continued to demonstrate resilience and strategic focus against a backdrop of mixed macroeconomic conditions across the region. While the broader East African economy showed signs of recovery and relative stability, external pressures persisted marked by shrinking disposable income and rising input costs,” Oduor explained.
According to the brewer, the improved performance was underpinned by a solid strategy and increased consumer engagement, even as inflation and illicit alcohol proliferation remained a concern.
Both beer and spirits recorded volume growth, contributing to a 2 per cent overall volume increase across EABL’s regional markets.
Jane Karuku, the Group Managing Director and CEO, attributed the strong results to the deliberate execution of their strategic plan.
“EABL delivered a strong set of results marked by topline growth and double-digit profit expansion. All our markets recorded growth, fortifying our business position across the region,” Karuku state.
“During the year, we remained focused executing on our strategy, setting the right foundation for the results achieved and for sustainable long-term growth. We continue to invest in our brands, so they remain relevant for today’s consumers, and to broaden our portfolio to cater for a greater variety of occasions.”
The company’s gross profit for the period stood at Sh54.1 billion, with operating costs rising to Sh29.2 billion, up from Sh24.8 billion the previous year.
However, foreign exchange gains of Sh313 million – a reversal from the Sh3.9 billion loss last year – and reduced finance costs contributed to the bottom-line growth.
Net finance costs dropped significantly to Sh5.9 billion, down from Sh8.1 billion the previous year, aided by a Sh8.3 billion reduction in debt.
EABL closed the year with Sh12.7 billion in cash and bank balances, an increase of Sh1.9 billion.
In the operating environment, the company observed regional variations.
“The macroeconomic environment across the region remained stable, with steady economic growth recorded. In Kenya, interest rates declined while the Kenya Shilling appreciated against major currencies, reversing the depreciation experienced in the prior year. In Tanzania, interest rates remained stable while the currency depreciated against major currencies. Uganda remained largely stable,” the statement noted.
The brewer cautioned that pressures such as inflation, illicit alcohol trade, and constrained consumer spending continue to challenge the sector.
“These factors underscore the need for stronger regulatory enforcement and collaborative action to safeguard consumers and legitimate players within the sector,” the company stated.
Looking forward, EABL reaffirmed its focus on long-term growth and value creation, expressing optimism about the future.
The company said, “We remain focused on executing our strategy with discipline to continue building on the underlying growth momentum and deliver long-term sustainable growth.”
As EABL pushes forward with investments in brands, productivity, and sustainability, its performance suggests continued stability and adaptability in a complex regional business climate.
