East African Breweries limited (EABL) has posted a 27.7% drop in net profit to Ush189billion for the half year ended December 2016 compared to Ush 265 billion posted in the same period in 2015.
The brewer’s net sales dropped by 6.2% to Ush 121.1billion as the company said this was as a result of increased taxation and foreign exchange fluctuations in its East African Market.
The Ugandan market registered a 7% growth in sales mainly driven by the good performance of emerging beer and spirits. EABL has a 98.2% shareholding in Uganda Breweries that has been a leading brewer in Uganda since it began operations in 1946 and UBL was the 18th registered business in the whole of Uganda and the pioneering brewery in the country.
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Operations from Kenya delivered flat sales with double digit growth in spirits and senator which had off set the impact of price increase of bottled beer.
Generally, EABL’s parent company (Diageo) reported a growth of 4% in net sales in Africa and a 2% growth in operating Profits.
Despite the drop in earnings, the company’s board of Directors declared an interim dividend of Ksh2 per share, payable on or about April 21 to shareholders who will be on register by March 31.