East African Breweries PLC (EABL) posted one of its strongest financial performances in recent years after reporting a 49 per cent jump in annual profit, driven by higher beer and spirits sales, improved cost management and lower borrowing costs.
The brewer announced on Thursday, August 6 that its Profit After Tax rose to Ksh18.2 billion for the financial year ending June 30, 2026, as revenue climbed 13 per cent to Ksh146 billion despite continued pressure on consumers from the high cost of living.
The improved performance also saw EABL reward shareholders with a significantly higher payout after the Board proposed a final dividend of Ksh8.70 per share, bringing the total dividend for the year to Ksh12.70 per share, a 59 per cent increase from the previous financial year.
The company also strengthened its balance sheet by reducing its total debt by Ksh4.8 billion, lowering financing costs during the year.
Commenting on the results, EABL Group Managing Director and CEO Jane Karuku attributed the growth to strong sales momentum across the company's portfolio and prudent financial management.
"We delivered one of our strongest performances in recent years, achieving net revenue growth of Ksh146 billion. Profit After Tax increased by 49 per cent to Ksh18.2 billion, supported by volume growth, effective cost management, and lower financing costs, while total debt reduced by Ksh4.8 billion, further strengthening our balance sheet," she announced.
The brewer said the gains came as economic conditions across East Africa remained relatively stable, with contained inflation, more favourable interest rates and steadier currencies compared to the previous financial year.
Beer and spirits sales continued to grow across EABL's markets, helping offset consumer affordability pressures that persisted during the year.
The company also pointed to its productivity initiatives and disciplined execution as major contributors to the improved earnings.
Investor confidence also strengthened during the year, with EABL's share price rising by 43 per cent to close at Ksh269 by the end of June, reflecting optimism over the brewer's improved financial position.
Even with the strong results, EABL warned that challenges remain, particularly around household spending and the growing threat posed by illicit alcohol in the region.
According to the brewer, tackling illicit alcohol will require continued collaboration between governments, regulators and industry players to protect consumers and support sustainable industry growth.
Looking ahead, Karuku expressed confidence that the company is well positioned to maintain its growth momentum despite the uncertain operating environment.
She went on, "We remain well positioned to deliver sustainable growth through our diversified portfolio, market-leading brands and talented teams. As we continue to invest in our business and our communities, we are confident in our ability to create long-term value for shareholders while contributing positively to the socio-economic development of East Africa."
