East African Breweries Plc (EABL) has posted one of its strongest half-year performances in recent periods, with profit after tax rising 38 percent to KSh 11.2 billion for the six months ended 31 December 2025, supported by strong volume growth, easing financing costs, and tighter cost control.
The brewer’s net revenue grew 11 percent to KSh 75.5 billion, driven by 8 percent volume growth across its markets and effective revenue management, as macroeconomic conditions across East Africa showed signs of recovery.
The reporting period was characterised by easing inflationary pressures, declining interest rates, and stabilising or strengthening regional currencies, factors that helped lift consumer sentiment and business confidence. However, EABL noted that household disposable incomes remained under pressure and input costs continued to stay elevated.
Margin expansion and balance sheet improvement
Group Managing Director and CEO Jane Karuku said the strong performance reflected disciplined execution across the business, improved margins, and lower financing costs.
“We delivered one of our strongest half-year performances in recent periods. Net revenue grew by 11 percent to KSh 75.5 billion, supported by strong volume growth and effective revenue management. Profit after tax increased by 38 percent to KSh 11.2 billion, underpinned by disciplined cost control, margin expansion, and reduced financing costs,” Karuku said.
The Group also strengthened its balance sheet during the period, with total debt reducing by KSh 2.3 billion, easing pressure on financing expenses amid a gradually improving interest rate environment.
Higher interim dividend
In a signal of confidence in the Group’s earnings outlook, EABL’s Board of Directors has recommended an interim dividend of KSh 4.00 per share, subject to withholding tax. This represents an increase of KSh 1.50 per share compared to the prior year.
The higher payout reflects improved cash generation and the company’s continued focus on delivering shareholder value, even as it navigates a challenging consumer environment.
Strategic execution and innovation
During the period, EABL continued to invest in innovation, commercial execution, digital capability, and sustainability, strengthening its ability to respond to changing consumer preferences while building long-term resilience.
Karuku noted that broader global and regional trends are increasingly supportive of the Group’s strategy, particularly the shift towards trusted brands, local relevance, and premium experiences.
“East Africa’s youthful demographics and accelerating digital adoption continue to unlock new growth opportunities, enabling us not only to respond to change, but to shape it,” she said.
Asahi transaction update
On the proposed change in shareholding, EABL confirmed that on 17 December 2025, Diageo announced the sale of its stake in the brewer to Asahi Group Holdings Ltd. Subject to regulatory approvals, completion of the transaction is expected in the second half of 2026.
EABL said it continues to engage with stakeholders and remains confident that the transaction will further strengthen the business and support long-term value creation.
