Naema Celestine 
| Benmike Wekesa |
The year 2024 for East Africa Breweries Limited can only be described as a year with mixed fortunes. It was characterized by significant challenges and remarkable achievements.
The EABL management noted that the year, which ended on June 30th, was marked by volatility in the East African region and significant exchange rate fluctuations. Challenges led to a 12% drop in the Brewers’ earnings after tax, from 12.3 billion Shillings in 2023 to 10.9 billion Shillings in 2024.
Despite the drop in earnings, there was a 1% increase in volume and a 13% increase in net sales, reaching 124.14 billion Shillings, up from 28.8 billion Shillings.
“Our consumer continues to be impacted by spending pressures,” explained the management. “We observe that the competition for the consumer’s share of wallet is intense, leading to a shrinking category and the need for consumers to reprioritize their spending.”
They also noted, “We felt the impact of a 14% increase in fuel prices on our distribution costs. There is still some pressure on ethanol pricing, which was up 177% year on year. Sugar costs increased by about 26%, and glass costs grew by 7%, adding pressure to our cost of sales.”
During the year, EABL registered growth in all three markets: Kenya led with 15%, accounting for 65% of the group’s total earnings; Uganda followed with 12%, making up 21% of the total revenue; and Tanzania grew by 9%, contributing 14% of the company’s earnings. In terms of products, there was a 13% increase in premium products, with beers growing by 12% and mainstream spirits by 10%.
“From a commercial execution standpoint, we believe that an FMCG must be available within arm’s reach wherever the consumer is. We are driving availability through both traditional and emerging channels to ensure our brands are accessible,” the management stated. “We are also winning at the point of sale, with great execution in supermarkets and other outlets.”
To reduce their carbon footprint, EABL has collected over 17 million bottles for recycling through its Rudisha campaign. The brewery is set to make further investments to reduce operational costs, which grew by 18%, through strategic investments.
For the year under review, shareholders will benefit from a dividend payout of 7 Shillings per share.
