EABL reports 12% profit growth to US$94.4M in FY 25
East African Breweries posts strong financial performance, with increased revenue, reduced debt, and a potential ownership shakeup underway.
KENYA – East African Breweries PLC (EABL), a subsidiary of global beverage leader Diageo, has posted a 12% growth in profit after tax to Kes 12.2 billion (US$94.4M) for the full year ended June 30, 2025.
This rise was attributed to topline growth, foreign exchange gains, and reduced finance costs achieved through lower debt and interest rates. The profit growth offset the effect of one-off costs incurred during the year.
Net revenue surged 49% to Kes 128.8 billion, compared to Kes 124.1 billion US$960.3M) recorded the previous year. The company also reported a 2% increase in sales volume, with both beer and spirits segments registering growth across all its markets.
EABL Group Managing Director and CEO Jane Karuku noted that the company delivered solid performance supported by strategic execution, portfolio expansion, and effective commercial operations.
She emphasized continued investments in brand relevance and product diversification as key to sustaining future growth.
Cash and cash equivalents rose to Kes 12.7 billion (US$98.3M), up by Kes 1.9 billion (US$14.7M). This increase was driven by revenue growth and a reduction in the cost of borrowing.
Total debt, including overdrafts, was reduced by Kes 8.3 billion (US$64.2M), leading to a notable decline in finance expenses.
The company observed that macroeconomic conditions across its operating region remained generally stable. In Kenya, interest rates decreased, and the Kenyan Shilling appreciated against major international currencies, reversing the depreciation trend seen the previous year.
Tanzania experienced currency depreciation, although interest rates remained steady, while Uganda’s economic environment was reported to be largely stable.
Despite the positive results, EABL acknowledged external challenges such as rising input costs, reduced consumer spending linked to lower disposable income, and increased circulation of illicit alcohol.
The company has urged stronger enforcement of regulations and collaborative efforts to protect consumers and legitimate industry participants.
The Board of Directors declared a final dividend of Kes 5.50 per share, raising the total dividend payout to Kes 8.00 per share, representing a 14.3% increase from the previous year.
Amid the financial results, reports have emerged that Diageo has initiated a strategic review of its majority shareholding in EABL.
According to Bloomberg, the review is being conducted with the support of financial advisers Bank of America and Goldman Sachs. The outcome could involve either a partial or full divestment of Diageo’s stake in EABL’s beer business.
This move aligns with Diageo’s global shift toward an asset-light model aimed at releasing capital and boosting growth.
Potential buyers reportedly include international brewers such as Heineken NV, AB InBev, and France’s Castel Group. However, no final decisions have been confirmed regarding the outcome of the review.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
