East African Breweries Plc (EABL) reported a KSh 12.2 billion after-tax profit for the year ended June 2025, marking a 12.2% increase from the previous year.
The Kenya-based Diageo subsidiary credited the growth to foreign exchange gains, a revised excise duty structure, and lower borrowing costs.
The Kenyan shilling, which reversed a 2023 depreciation, maintained stability through 2025, becoming Africa’s best-performing currency. A July report by Ebury Partners noted its continued strength is underpinned by “economic resilience and access to international funding.”
Revenue and Operational Highlights
EABL’s net revenue rose 4% to KSh 128.8 billion, with both beer and spirits volumes expanding across the region. Profit before tax jumped 15.1% to KSh 19.3 billion, while operating profit climbed to KSh 25.2 billion.
Other metrics showed positive momentum:
- Gross profit: KSh 54.1 billion (+0.8%)
- Cash and cash equivalents: KSh 12.7 billion (+8.8%)
- Total debt reduction: KSh 8.3 billion
- Total assets: KSh 131 billion (+5.5%)
The Board declared a final dividend of KSh 5.50, bringing the full-year payout to KSh 8.00, a 14.3% year-on-year increase.
“The results demonstrate EABL’s resilience and strategic focus. The Board remains prudent and optimistic about our growth prospects,” said Chairman Martin Oduor-Otieno.
“Disciplined execution and portfolio expansion enabled growth in all our markets—Kenya, Uganda, and Tanzania—which fortifies our regional position,” added Group Managing Director & CEO Jane Karuku.
Challenges and Sector Dynamics
Despite solid performance, EABL flagged risks from rising input costs and shifting consumer behaviour. Karuku cautioned:
“The ratio of illicit to formal alcohol has worsened to 60:40, up from 50:50 just a few years ago. We’ve seen consumers trade down as incomes shrink—leading to health and revenue risks. Stronger regulatory enforcement is vital,” added CFO Risper Ohaga.
Speculation around Diageo’s stake review was also addressed, with Karuku responding pointedly:
“What Diageo exit? We’ve received no formal communication.”
Industry Outlook
Eric Kiniti, EABL’s Corporate Relations Director and ABAK Secretary, warned that recent regulatory proposals could damage e-commerce, jobs, and tax revenues:
“Alcohol is a significant contributor to the exchequer. Any disruption will impact jobs and digital trade heavily.”
