Executive Summary

Our company recorded 15% growth in revenue to Kshs 86 billion for the year ended June 2021. Profit before tax was up 2% to Kshs 10.9 billion. The slower profit growth was driven by the impact of cost inflation, adverse foreign exchange and tax charges.

EABL witnessed significant business growth in Fiscal year 2021 on the back of improved year-on-year operating environment and rapid adaptation of our ways of working to respond to shifting consumer behaviour across East Africa. The COVID-19 pandemic continued to disrupt our operations, impacting how we run our business and posing significant challenges to our consumers. Nationwide curfews and the need for social distancing impacted sales in bars and restaurants, as these on-trade channels operated within restricted opening hours in Kenya and Uganda, our largest markets.

Notwithstanding, the EABL team executed our strategy with determination, consistency, and clarity to deliver better, leveraging our wide portfolio of brands and route to market diversity across East Africa.

Our company recorded 15% growth in revenue to Kshs 86 billion for the year ended June 2021. Profit before tax was up 2% to Kshs 10.9 billion. The slower profit growth was driven by the impact of cost inflation, adverse foreign exchange and tax charges.

EXECUTIVE SUMMARY (PDF 1737KB)

Chairman’s Statement & Group Managing Director’s Statement

EABL’s business during the year grew +15% in revenue compared to last year and +2% profit before tax vs prior year. This was as a result of the determination and resilience of our employees combined with a strong portfolio of brands, and route to market across East Africa.

Dr. Martin Oduor Otieno
Group Chairman

EABL’s business during the year grew +15% in revenue compared to last year and +2% profit before tax vs prior year. This was as a result of the determination and resilience of our employees combined with a strong portfolio of brands, and route to market across East Africa.

Mrs. Jane Karuku
Group Managing Director and Chief Executive Officer

CHAIRMAN’S AND GROUP MD STATEMENTS (PDF 4813KB) BOARD OF DIRECTORS (PDF 7161KB)

Financial Hightlights cont

Shifts in Net Sales Contribution by Country

Sequential Net Sales Recovery

Net Sales Recovery Across Segments (Ksh bn)

Commercial Update

East African Breweries Limited’s (EABL’s) Route to Consumer (RtC) strategy is to ensure great physical availability of our brands, and world class execution across all channels and segments, clearly establishing how we serve the market and in the most cost-effective way to emerge stronger and accelerate our growth journey. The three countries have come together as a region to build an advantaged RtC strategy leveraging on best practices and talent in the region and benchmarking with the best global practices to drive transformation. We have built capability and skill set within the region to benefit from each other through a strong advantaged position to gain a competitive edge that enables us to deliver our strategic imperatives and guarantee sustainable quality growth now and into the future.

1. Building a network of capable, efficient, and sustainable distributor partners

We have a network of well capitalized and resourced distributor partners handling our mainstream beer, emerging business – mainly comprised of Senator – and the spirits portfolio. We have built and embedded structures, systems, standards and processes critical for long-term sustainability of the partners. These, coupled with our key standards and plans, have been instrumental in delivering our overall strategic plans. We have successfully created a ‘winning through execution’ culture by creating competitive trade terms, incentives and reward programs with individual businesses. These are targeted at delivering distributor Return on Invested Capital (ROIC).

2. Supply chain efficiencies to improve availability and cost efficiency

Having launched the automating processes for data collection for our sales force in 2012, we have seen tremendous outcomes in our operations. The team is well equipped and empowered to conduct value adding conversations with our retailers. The finance, marketing and supply chain teams use the data for daily plans, operation planning, and capacity forecasting and reporting.

3. Simplification using data analytics and technology

Simplification is fundamental to creating a well-coordinated, capable and agile sales force to drive active selling. We have a robust customer facing sales team completing an average 1,200 daily journey plans across the country. Simplification of opportunity identification in the sales call, supported through data analytics and technology, ensures that the teams navigate complexity with ease and deliver Every Day Great Execution. We have embedded data driven decision making and execution at the micro level. - transforming how we work and significantly evolving our performance management.

COVID -19 RtC RESPONSE

As the crisis set in, EABL leveraged on the off-trade channel, amplified the wholesale channel and focused on new channels such as home deliveries and e-commerce to ensure consumers continue enjoying their favorite drinks.

COMMERCIAL UPDATE DOWNLOAD (PDF 405KB)