By The Weekly Vision Business Desk
East African Breweries PLC (EABL) has closed its financial year to 30th June 2026 with its strongest performance in recent years, posting a 49 per cent surge in after-tax profit to KSh18.2 billion, even as the brewer navigates a proposed shareholder-level transaction that could see Diageo Plc hand over its stake to Asahi Group Holdings Ltd.
The Board, in condensed audited results released this week, reported net sales of KSh146.0 billion, up 13 per cent year-on-year, driven by volume growth, a strengthened product portfolio and successful innovations. Earnings before interest and taxes climbed 27 per cent to KSh32.1 billion.
Shareholders are the biggest beneficiaries of the improved performance. The Board has recommended a final dividend of KSh8.70 per share, bringing the total dividend for the year to KSh12.70 — a 59 per cent jump on the prior year’s KSh8.00. The final dividend is scheduled for payment on or about 31st October 2026 to shareholders on the register as at the close of business on 19th October 2026.
Group Chairman Dr Martin Oduor-Otieno said the operating environment across East Africa had remained broadly stable during the year, with inflation, interest rates and currencies largely unchanged, even as consumer discretionary spending came under pressure and cost inflation persisted.
Group Managing Director and CEO Jane Karuku attributed the results to disciplined execution across the business’s markets and categories, coupled with continued investment in productivity, cash generation and brand-building.
The numbers bear this out. Cash and cash equivalents rose to KSh18.0 billion from KSh12.7 billion, an increase the company linked to stronger revenue and improved working capital management. Total borrowings fell to KSh29.5 billion from KSh36.9 billion, cutting KSh5.8 billion off the debt book and easing finance costs — net finance costs dropped to KSh4.4 billion from KSh5.9 billion.
Net cash generated from operating activities rose to KSh28.1 billion from KSh23.8 billion, while total equity strengthened to KSh50.6 billion from KSh42.3 billion.
The results statement addressed, for the first time in this format, the proposed sale of Diageo Plc’s shareholding in EABL to Asahi Group Holdings Ltd — a transaction disclosed in December 2025 that has drawn scrutiny from regulators and investors alike.
The Board said it understood that unconditional regulatory approvals had already been granted in Uganda, Tanzania and by Kenya’s Capital Markets Authority, but that review by Kenya’s Competition Authority remains pending. EABL was at pains to stress that the transaction sits strictly at the shareholder level between Diageo and Asahi, and does not involve EABL itself as a party.
For investors, the distinction matters: a change of controlling shareholder does not automatically alter EABL’s own listing status, governance structure or dividend policy, though market watchers will be tracking whether Asahi’s entry brings any shift in strategic direction once the Kenyan regulatory review concludes. The company said it expects the deal, once completed, to cement Kenya and the wider region as a destination for significant foreign direct investment.
Management said its priorities for the year ahead remain understanding the consumer, investing smartly, driving productivity and advancing sustainability commitments under the Group’s “Spirit of Progress” ESG agenda, which spans carbon emissions, water efficiency and inclusive, responsible drinking initiatives. Basic earnings per share for the year stood at KSh18.99, up from KSh11.97 in the previous financial year.
