(EABL)East African Breweries Plc posted an impressive 49.4% growth in net earnings for the financial year ended 30th June 2026). Net profit rose to KSh18.2billion compared to KSh12.2 billion the previous year.
The strong profitability was anchored by double-digit top-line growth. Net revenues climbed 13.3% to KSh146.0billion.
Gross profit grew14.9% to KSh 62.2billion. This drove a slight gross margin expansion to 42.6% from 42.0% in the previous period.
EABL: What is behind the financial numbers
EABL saw its cost management remain effective throughout the year. Total costs grew by a modest 2.0% to KSh 118.3billion. This increase primarily reflected a 12.2% rise in cost of sales. The performance was likely tied to higher volume throughput.
Finance costs benefited from the 14.9% drop in total borrowings (from KSh 42.3billion in 2025 to KSh 36.0 billion in 2026.
EABL saw its operating expenses drop 1.2% to KSh 28.9 billion. Currency translations resulted in forex loss of KSh 1.2billion. This is compared to a gain of KSh 313million in 2025.
The business posted a 43.2% growth in pre-tax earnings to KSh27.7billion. On account of the KSh 9.4Bn tax change (an effective tax rate of 34.1%), the business reported net earnings of KSh 18.2billion. Owners of the business raked in an estimated KSh 15.0billion.
EABL has rewarded shareholders with a fat dividend cheque
The board of directors has recommended a final per-share dividend payment of KSh 8.70. This is to be paid on or about 31st October 2026. Book closure date is 19th October 2026. Inclusive of the KSh 4.00 per share interim payout, this brings the total dividend payout to KSh 12.70. This is 58.8% higher than the KSh 8.00 payout in 2025
According to an earnings commentary by Standard Investment Bank(SIB), EABL revenues were up13.3%.This was commendably growing faster than costs which were up 2.0%.
Ongoing debt reduction continues to strengthen EABL gearing position. Debt-to-equity ratio improved by 20.9% in 2026. Analysts maintain that lower financing obligations should provide clear tailwinds to bottom-line profitability going forward.
