The East African Breweries Limited (EABL) has announced a 47.4% nosedive net profit during the June-December 2020 period due to sales reduction and increased tax provision.
The half-year net earnings receded from sh 7.21 billion in 2019 to sh 3.79 billion in 2020, which resulted in an unprecedented revulsion of the interim dividend to conserve cash.
However, in as much as EABL experienced a drop in the half-year financial performance in 2020 compared to 2019, the management noted great furtherance to the sh 0.2 billion net loss posted for the half-year ended June 2020.
Last year, EABL declared an interim dividend payout of sh 3 per share and therefore paid out sh 2.37 billion.
According to EABL group chief executive Jane Karuku, the Covid-19 pandemic hindered the brewer’s financial growth but its recovery set in in the second half of the year whereby the sales in July- December 2020 recorded a 53 percent increase compared to the January – June 2020 period’s finance performance.
“We remain cautiously optimistic about the second half of the year, not least because the pandemic and potential shifts in our trading environment present risks on the horizon,” said Ms. Karuku.