EABL’s profit rises 124%, net sales in Tanzania up by 21% on growth of Serengeti trademark

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

According to a statement seen by The Business Wiz, the group’s net sales were boosted by double-digit growth across all its markets and categories owing to an improved operating environment as outlets reopened, coupled with sustained investment behind marketing and commercial activities. EABL navigated rising inflation and increase in excise taxes through strategic pricing and effective cost management to deliver its highest profit in 5 years of Kshs 15.6 billion, up 124 percent.

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

EABL Group MD and CEO, Ms. Jane Karuku, said: “EABL has delivered another set of consistent 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.”

Ms. Karuku added: “Although these results show we are now ahead of our pre-COVID growth trajectory, the challenging macro-economic environment, volatile tax and regulatory policy will continue to impact our 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.”

Ms. Karuku said EABL’s Environmental, Social and Governance (ESG) agenda remained a key focus in the year with finalisation of the Kshs 5 billion biomass plant being a key milestone.

Tanzania Market Highlights:

Net sales grew 21 percent, driven by 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 Serengeti Breweries Managing Director Mark Ocitti Ongom Ocitti said: “Serengeti breweries is proud to have been part of EABL’s vibrant growth story. Our net sales grew by 21 percent driven by consistent strengthening of Serengeti trademark and an expanded portfolio of brands that continue to satisfy consumer’s across different categories and price points,”

He added, “As we look into the future our commitment is to continue investing in people and processes to ensure the business grows sustainably. As EABL celebrates 100 years of existence, we would like to thank all our stakeholders and more so our employees, customers and consumers in Tanzania for being part of our success and our strong heritage. Together, we will continue to live our purpose to celebrate life everyday everywhere”.