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EABL’s interim dividend up 60pc as Diageo exits
Beer production line at the EABL plant in Ruaraka, Nairobi.
East African Breweries Plc (EABL) has announced a 60 percent spike in its interim dividend to Sh4 per share after posting a 37.6 percent growth in profit after tax of Sh11.16 billion in the half year ended December 2025.
The brewer's net income rose from Sh8.1 billion a year earlier, riding on higher revenues, lower operating costs and reduced financing costs.
The brewer’s management has proposed an interim dividend of Sh4 per share up from Sh2.50 paid out last year, a decision that will see it pay out Sh3.16 billion on April 30 to shareholders who will be on record as of February 20.
“Profit after tax rose by 38 percent to Sh11.2 billion, reflecting disciplined execution, strong volume-led growth and continued focus on value creation,” EABL’s chairman Martin Oduor-Otieno said in a statement.
"In line with our commitment to delivering shareholder value, the board has recommended an interim dividend of Sh4 per share subject to withholding tax."
The announcement will see Diageo Plc, which is selling its 65 percent shareholding in EABL to Japanese firm Asahi Group Holdings, pocket Sh2.05 billion.
Diageo, the world’s largest spirits group, has agreed to sell its stake in the Nairobi Securities Exchange-listed firm to Asahi holdings for Sh303.5 billion. The deal is set to be completed in the second half of 2026.
EABL reported an 11.1 percent growth in net revenues indicating increased consumption of its products such as beer and spirits. Total volume grew by eight percent supported by growth in both spirits and beer.
Last year EABL had singled out performances by Kenya Cane, which targets the bottom end of the market, and Johnnie Walker brands in growing its sales.
The brewer’s operating costs remained flat at Sh13.7 billion which management attributed to improved efficiencies.
EABL’s financing costs also fell 36.8 percent to Sh2.1 billion on the back of reduced borrowings and a fall in interest rates.
The company for instance raised Sh16.7 billion through a corporate bond in November last year at an interest rate of 11.8 percent. This was cheaper than an earlier Sh11 billion corporate bond it had redeemed earlier and which had an interest rate of 12.25 percent.
Its total debt reduced by Sh2.2 billion while its cash position improved by Sh5.5 billion with the brewer having raised Sh16.7 billion in the corporate bond for purposes of repaying other borrowings and general business purposes.
“Cash and cash equivalents of Sh17.7 billion increased by Sh5.5 billion, reflecting revenue growth and improved working capital management,” said the brewer.
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