EABL POSTS KSH12.2 BILLION PROFIT AS TOUGHER ALCOHOL RULES LOOM

East African Breweries PLC (EABL) has reported a profit of Ksh12.198 billion for the financial year ended June 30, 2025, even as it faces potential regulatory headwinds in the alcohol industry.

According to the company’s audited results released on July 30, 2025, net revenue rose by 49% to Ksh128.8 billion, supported by a 2% increase in sales volume. Both beer and spirits recorded growth across the region.

Profit before tax stood at Ksh19.312 billion, with an income tax charge of Ksh7.114 billion. The company attributed the 12% growth in profit after tax to stronger topline performance, foreign exchange gains, and reduced finance costs following a decrease in debt and interest expenses.

EABL's cash and cash equivalents rose to Ksh12.7 billion, up Ksh1.9 billion, while total debt, including overdrafts, was reduced by Ksh8.3 billion.

The Board of Directors has recommended a final dividend of Ksh5.50 per share. If approved, the total payout for the year will rise to Ksh8.00 per share, representing a 14.3% increase from the previous year’s Ksh7.00.

EABL noted stable macroeconomic conditions across its markets, including Kenya, Tanzania and Uganda. Kenya experienced a stronger shilling and lower interest rates, while Tanzania faced currency depreciation but stable rates. Uganda remained relatively stable.

Despite this favourable environment, the firm cited persistent challenges, including the spread of illicit alcohol, high input costs and reduced consumer spending due to inflationary pressure. The company called for stronger regulatory enforcement to protect consumers and legitimate businesses.

Meanwhile, the National Authority for the Campaign Against Alcohol and Drug Abuse (NACADA) has proposed raising the legal drinking age from 18 to 21 and tightening rules around alcohol advertising, online sales, home deliveries, and celebrity endorsements moves that could impact industry operations if passed into law.