EABL Half Year Results show 11% revenue growth, 38% profit rise and higher dividends, driven by volume gains and lower financing costs.
When you look at the EABL Half Year Results for the six months ended 31 December 2025, the numbers point to a business that benefited from improving economic conditions across East Africa. East African Breweries Plc reported net revenue of Ksh 75.5 billion, up 11 percent from the same period last year, while profit after tax rose 38 percent to Ksh 11.2 billion. The reporting period coincided with easing inflation, lower interest rate pressure, and more stable currencies in several markets, all of which supported consumer spending and business confidence.
Household budgets remain tight, and production costs stayed high, but the overall operating environment improved compared with earlier periods. That shift helped lift volumes and supported steadier demand across the company’s key markets.
Sales Volumes Support Revenue Growth
Volume growth played a central role in the half year performance. EABL reported an overall volume increase of about 8 percent during the period. Beer volumes grew by roughly 9 percent, while spirits recorded stronger gains of around 16 percent. Markets such as Uganda and Tanzania delivered double-digit volume growth, helping offset slower momentum elsewhere.
Improved pricing discipline and tighter revenue management also contributed to higher net sales. These factors combined to push revenue upward without placing additional strain on consumers already managing higher living costs.
EABL Half Year Results – Profit Performance and Cost Control
The sharp rise in profit reflected more than sales growth alone. Lower financing costs supported earnings after EABL reduced total debt by about Ksh 2.3 billion during the period. That reduction strengthened the balance sheet and eased pressure from interest expenses at a time when borrowing costs remain elevated across the region.
Management also maintained firm control over operating costs while continuing to fund priority areas of the business. Input costs stayed high, but tighter cost oversight helped protect margins and support the profit increase reported for the half year.
A key outcome of the EABL Half Year Results was the recommendation of an interim dividend of Ksh 4.00 per share, subject to withholding tax. This represents an increase of Ksh 1.50 per share compared with the prior year interim payout. The higher dividend translates to a payout of roughly Ksh 4.35 billion to shareholders for the period.
The increase reflects confidence in cash generation and earnings quality, even as broader economic pressures persist across many consumer markets in the region.
During the period, EABL continued to invest in areas it views as central to future performance. These included product innovation, commercial execution, digital capability, and sustainability-related activity. The company maintained a focus on brand relevance and portfolio breadth as consumer preferences shift, particularly among younger and digitally engaged audiences.
Management described execution across markets as disciplined and consistent, pointing to clearer alignment between strategy and day-to-day operations.
The half year period also included developments around EABL’s ownership structure. In December 2025, Diageo announced plans to sell its shareholding in EABL to Asahi Group Holdings, subject to regulatory approval. Completion is expected in the second half of 2026.
The proposed transaction continues to draw attention from regulators, courts, and market participants. While the process unfolds, EABL has said it remains focused on operational delivery and engagement with stakeholders.
For investors, the EABL Half Year Results point to improved earnings momentum, a stronger balance sheet, and higher interim returns. Revenue and profit growth suggest demand for the company’s products held up better than expected, even as consumers remain cautious.
At the same time, the pending ownership change and broader economic conditions remain factors to watch closely. These results show progress, supported by steadier markets and disciplined execution, with the next phase shaped by both economic trends and corporate decisions still ahead.
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