Last week, it was reported that Diageo had tasked Bank of America and Goldman Sachs to look for a buyer for the beer segment of East African Breweries Limited (EABL). The deal is valued at about USD 1 billion.
This week, EABL released its financial results for the Year ended June 2025. The FY 25 results show a promising recovery. Net Revenue grew from Kshs 124.1 billion to 128.8 billion, translating into a 4% growth. Profit after tax grew double digit at 12% from Kshs 10.9 billion to Kshs 12.2 billion.
This growth came at a backdrop of heavy productivity measures alongside improved macroeconomic conditions such as the appreciation of the Kenya shilling and stable interest rates in Tanzania. Uganda continued to post more stable macroeconomic conditions across the three markets.
This year, shareholders will walk away with a higher dividend payout of Kshs 8 per share versus last year’s payout of Kshs 7 per share.
EABL also posted better cash controls through a trimmed down spend in capex reducing from Kshs 7.2 billion to Kshs 6.4 billion. The Group reduced its total debt exposure opting for a more balanced gearing ratio.
However, the Group’s inventory increased from Kshs 12.6 billion to Kshs 15.9 billion positing to possible forecasting challenges, Trade and receivables also increased largely due to more favourable credit terms to distributors. This was balanced by an increase in the Trade and other payables, with the Group having recently revised its supplier payment terms.
Overall, the Group’s financial results show a promising recovery against a backdrop of contrast internal and external watchouts. In FY 26, the Group will be awaiting the outcome of Diageo’s strategic playout in East Africa, Tanzania remains a watchout with the currency depreciation while Uganda will be heading into Presidential elections.