Andrew Kilonzo, MD, Kenya Breweries greets Justin Mollel, Group Chief Financial Officer, looking on is EABL Managing Director Jane Karuku./HANDOUT
East African Breweries (EABL) shrugged off foreign exchange losses, global supply chain disruptions and cautious consumer spending to post a 49 per cent jump in annual profit.
The brewer reported a profit after tax of Sh18.2 billion for the financial year ended June 2026, up from Sh12.2 billion a year earlier.
This was boosted by revenue that climbed 13 per cent to more than $1.12 billion (about Sh146 billion).
The earnings have seen the company recommend a final dividend of Sh8.70 per share, lifting the total annual dividend to Sh12.70 per share, a 59 per cent increase from the previous year.
The performance came despite a Sh1.2 billion foreign exchange hit arising mainly from the weakening of the Kenyan shilling against the British pound and the euro, currencies used to pay for imported inputs.
EABL Managing Director Jane Karuku said the company also faced disruptions linked to geopolitical tensions in the Middle East, rising food inflation and higher input costs.
"Disciplined cost control, productivity improvements and lower finance costs cushioned the impact of the external shocks," said Karuku.
Operating profit before foreign exchange effects grew by nearly 34 per cent, while finance costs fell after the brewer reduced its debt by almost Sh6 billion during the year.
Total debt declined from about Sh39 billion to Sh33 billion, helping lower interest expenses by Sh1.5 billion.
Speaking during the results presentation, Karuku said the business had navigated a difficult macroeconomic environment marked by persistent geopolitical instability, pressure on household incomes and shifting consumer behaviour.
She noted that while consumers remained under financial strain and were increasingly trading down to cheaper products, there was also growing demand for flavoured alcoholic beverages and premium brands, creating opportunities for innovation and premiumisation.
Regional diversification also boosted performance.
Uganda recorded 16 per cent revenue growth, while Tanzania posted a sharp 44 per cent increase as the market continued its recovery. Kenya, which contributes about 60 per cent of EABL's business, grew by five per cent.
The company said the stronger contribution from regional markets reduced its dependence on Kenya and validated its long-term diversification strategy.
Across product categories, beer volumes rose nine per cent, supported by improved excise tax conditions, while mainstream spirits expanded by 30 per cent, driven by innovation and new flavours targeting younger consumers. Premium beer and spirits also grew nine per cent as consumers increasingly embraced higher-value offerings.
The brewer generated Sh42 billion in cash from operations, an 18 per cent increase from the previous year, allowing it to fund capital investments, pay dividends and continue deleveraging its balance sheet. Free cash flow rose to about Sh22 billion from Sh17 billion a year earlier.
Looking ahead, EABL said it expects the operating environment to remain dynamic, with food inflation, illicit alcohol, election cycles across East Africa and global geopolitical tensions continuing to pose risks. However, it said stable regional economic growth, easing interest rates, and continued investment in innovation, digital channels and manufacturing capacity position the company for sustained growth.
