EABL's Strong FY25 Financial Performance Fuels Significant Dividend Increase to KShs 8.00 Per Share

EABL's Financial Prowess Translates into Enhanced Shareholder Returns with KShs 8.00 Total Dividend

East African Breweries PLC (EABL) has announced its audited results for the year ended 30th June 2025, revealing a compelling story of financial strength and strategic execution. This robust performance has culminated in a significant increase in shareholder payouts, with the Board of Directors declaring a final dividend of KShs 5.50 per share, bringing the total dividend for the year to KShs 8.00 per share. This marks a substantial 14.3% increase over the KShs 7.00 total dividend paid in the prior year.

To track upcoming dividends, visit ApexHub Insights - Upcoming Dividends.

Driving the dividend: A strong financial performance

EABL's ability to deliver this enhanced dividend payout is firmly rooted in its solid financial performance across key metrics:

Revenue growth: The company achieved a commendable 4% growth in Net Revenue to KShs 128.8 billion, demonstrating consistent market demand and effective sales strategies across both beer and spirits categories, which collectively saw a 2% volume growth.
Double-digit profit expansion: Most notably, Profit After Tax surged by 12% to KShs 12.2 billion. This significant jump in profitability was primarily driven by the strong top-line growth, coupled with crucial financial efficiencies.
Favorable foreign exchange impact: EABL benefited immensely from a positive shift in foreign exchange, recording foreign exchange gains during the year. This contrasts sharply with the losses incurred in the previous period, a direct positive impact from the appreciation of the Kenya Shilling against major currencies.
Strategic debt reduction and Lower finance costs: The company strategically reduced its total debt (including overdraft) by KShs 8.3 billion. This disciplined approach led to significantly lower finance costs, further boosting the bottom line and freeing up capital.
Robust cash generation: EABL's financial health is also evident in its strong cash generation, with Cash and Cash Equivalents increasing by KShs 1.9 billion to KShs 12.7 billion. This robust cash position provides the necessary liquidity to fund operations, strategic investments, and, importantly, sustainable dividend payments.

Operating environment: Navigating challenges with resilience

This impressive financial performance was achieved amidst a mixed macroeconomic environment. While regions like Kenya benefited from declining interest rates and currency appreciation, external pressures such as the proliferation of illicit alcohol, sustained input cost inflation, and shrinking disposable income continued to pose challenges. EABL's success in growing revenue and profit despite these headwinds underscores its strong market position and effective strategic execution.

What this means for investors:

The combination of robust financial growth and a significantly increased dividend payout sends a clear message to investors:

Strong return on investment: The KShs 8.00 total dividend per share signals a generous return for shareholders, making EABL an attractive proposition for income-focused investors and enhancing the overall yield.
Confidence in sustainable growth: The underlying financial performance, from revenue growth and profit expansion to effective debt management and strong cash flow, provides confidence that these dividends are sustainable and indicative of a financially sound company with a positive growth trajectory.
Reduced financial risk profile: The substantial reduction in debt improves EABL's financial flexibility and reduces its exposure to interest rate risks, making the company a more secure investment.
Resilience in diverse markets: EABL's ability to deliver growth and increase dividends despite prevailing market challenges demonstrates its operational resilience and strong brand power, reassuring investors about its long-term viability.

The final dividend is slated for disbursement around October 28, 2025. Shareholders on record by the close of business on September 16, 2025, will be eligible to receive this payment.

Looking ahead, EABL remains dedicated to executing its strategy with discipline, aiming to build upon its current positive trajectory to ensure sustained long-term growth and generate enduring value for its investors.

To track upcoming dividends, visit ApexHub Insights - Upcoming Dividends.