• EABL first-half net profit jumped 38% to 11.2 billion shillings
• Revenue rose 11%, helped by resilient volumes and lower finance costs
• Interim dividend raised 60% despite household income and cost pressures

East African Breweries Plc (EABL) reported strong operating performance in the first half of its 2025/2026 fiscal year. The company posted a net profit of 11.2 billion shillings ($86.8 million), up 38% from the same period a year earlier.

The increase marks a second consecutive year of profit growth for the company, which Diageo has agreed to sell to Japan’s Asahi Group Holdings, even as households across the region continue to face pressure on purchasing power.

According to information published by the company and reported by Bloomberg, net revenue rose 11% to 75.5 billion shillings ($585 million), supported by resilient volumes and pricing across the group’s main East African markets.

EABL said the improvement was largely driven by lower finance costs, made possible by a more favourable macroeconomic environment. Total debt fell by 2.2 billion shillings over the period, helping reduce financing expenses.

The outlook remains mixed, however. The company said disposable household income is still under pressure, while rising input and operating costs continue to weigh on margins. This is a challenge shared across the broader agrifood sector in East Africa.

Despite these constraints, EABL recommended an interim dividend of 4 shillings ($0.03) per share, an increase of 60% from last year.

Strong performance amid restructuring

EABL’s results come as an ownership change is underway at its parent company. Diageo announced last December the sale of its holdings in two local subsidiaries to Japan’s Asahi Group Holdings.

The $2.3 billion transaction included the sale of Diageo’s entire stake in Diageo Kenya Limited, which holds 65% of EABL and a 53.68% shareholding in United Distillers Vintners Kenya (UDVK).

The deal was initially expected to be completed in the second half of 2026, but could be delayed due to a legal challenge filed by Bio Tosha.

The distribution company, which appealed to the High Court, said that if the sale were finalised, it would no longer be able to secure an effective ruling in legal proceedings launched in 2016 against Diageo, EABL and UDVK over a dispute related to unfair competition practices.

On Jan. 20, the High Court said it would hear the case on an expedited basis and set Feb. 26 for a hearing at which all parties involved, including the plaintiff, Diageo, EABL and other concerned parties, must appear and present their arguments.

Espoir Olodo