By The Weekly Vision Business Desk
East African Breweries (EABL) shrugged off foreign exchange losses, global supply chain disruptions and cautious consumer spending to post a 49 per cent jump in annual profit. The brewer reported profit after tax of Sh18.2 billion for the financial year ended June 2026, up from Sh12.2 billion a year earlier. The performance was supported by a 13 per cent increase in revenue to Sh146 billion.
The strong earnings prompted the company to recommend a final dividend of Sh8.70 per share, taking the total annual dividend to Sh12.70 per share, a 59 per cent increase from the previous year. The performance came despite a Sh1.2 billion foreign-exchange hit, arising mainly from the weakening of the Kenyan shilling against the British pound and the euro, the currencies used to pay for imported inputs.
EABL Managing Director Jane Karuku said the company also faced disruptions linked to geopolitical tensions in the Middle East, rising food inflation and higher input costs. “Disciplined cost control, productivity improvements and lower finance costs cushioned the impact of the external shocks,” said Karuku.
Operating profit before foreign exchange effects grew by nearly 34 per cent, while finance costs fell after the brewer reduced its debt by almost Sh6 billion during the year. Total debt declined from about Sh39 billion to Sh33 billion, reducing interest expenses by Sh1.5 billion.
Speaking during the results presentation, Karuku said the business had navigated a difficult macroeconomic environment marked by persistent geopolitical instability, pressure on household incomes and shifting consumer behaviour.
She noted that while consumers remained under financial strain and were increasingly trading down to cheaper products, demand for flavoured alcoholic beverages and premium brands was also growing. Regional diversification further boosted performance. Uganda recorded 16 per cent revenue growth, while Tanzania posted a sharp 44 per cent increase as the market continued its recovery. Kenya, which contributes about 60 per cent of EABL’s business, grew by 5 per cent.
Across product categories, beer volumes rose 9 per cent, supported by improved excise tax conditions, while mainstream spirits expanded by 30 per cent, driven by innovation and new flavours targeting younger consumers.
Premium beer and spirits also recorded 9 per cent growth. The brewer generated Sh42 billion in cash from operations, an 18 per cent increase from the previous year, enabling it to fund capital investments, pay dividends and continue reducing its debt.
Free cash flow rose to about Sh22 billion, up from Sh17 billion a year earlier. Looking ahead, EABL said it expects the operating environment to remain dynamic, with food inflation, illicit alcohol, election cycles across East Africa and global geopolitical tensions continuing to pose risks.
However, the brewer said stable regional economic growth, easing interest rates and continued investment in innovation, digital channels and manufacturing capacity position the business for sustained growth.
