100 Years UP
100 Years BOLD
100 Years of Creating Value
100 Years of Creating Value
EABL Overview
East African Breweries PLC (EABL) is the leading branded alcohol beverage business in East Africa, with a wide and outstanding collection of brands that range from beer and spirits to adult non-alcoholic drinks (ANADs), reaffirming our standing as a total adult beverage (TAB) company. Our extensive network of breweries, distilleries, and distribution facilities span the six markets within which we operate in East Africa, especially concentrated in the three core markets of Kenya, Uganda and Tanzania. Despite operating in East Africa, our unique products can be found in more than 10 countries across Africa and beyond. The Group's geographic diversity is an important factor in delivering the highest quality brands to East African consumers and long-term value to investors.
Our broad portfolio consists of outstanding local jewels and global giants, reaching across categories, occasions and price points. We are proud of the brands we make and the positive impact they have in bringing people together, to celebrate life every day, everywhere.
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Group Chairman's Statement
I am very pleased to share with you our report for fiscal year 2022, a period which saw regional economies begin to recover from the impact of the Covid 19 pandemic. As you know, our two previous financial years were deeply impacted by the vagaries of the pandemic, and our focus then was to protect our people and the business. Fiscal Year 22 has been a much better year: not only have we seen a full reopening of our economies in East Africa, but we have also witnessed a resumption of our on-trade business.
Despite the challenges, our focus and agility have enabled us to navigate the volatility and deliver strong performance. Our employee engagement remains high, and we continue to invest for long-term growth, in our brands and in our portfolio. As a consumer-driven business, we take time to study the market, to understand consumer needs and wants and how best to satisfy them. That is why we continuously invest in innovation of our brands and delivery channels.
Group Managing Director's Statement
Creating a growth platform for the next 100 years
I am pleased to report another year of strong and consistent performance at East African Breweries PLC (EABL). In Fiscal Year 22, our company made progress towards its ambition of becoming one of the best performing, most trusted and respected consumer products companies in Africa. EABL is celebrating 100 years in 2022, and I would like to thank all our employees for their continued resilience, commitment and passion.
In the first half of the financial year, we saw the lifting of Covid 19 lockdowns across East Africa, and this led to the re-opening of the broader economy and on-premise channel. As a result, our business operations returned to normal. As consumers returned to trade, we supported re-opening of bars, investing $5 million over the pandemic period to revive our outlets
Group Chief Financial Officer’s Statement
Great performance in a challenging macroeconomic environment
The Group’s performance remained largely resilient despite key challenges faced during the year, demonstrating a sustained positive momentum even as we continue to navigate a dynamic operating environment.
Performance review
Net sales were up 27% to Kshs 109.4 billion as both beer and spirits recovered. Volume growth delivered 22% of the growth while 5% was delivered through a mix of premiumisation and strategic price increases following excise adjustments in Kenya and Uganda.
Volume
+22%
NSV
+27%
Kshs109.4bn
PAT
+124%
Kshs 15.6bn
DPS
Kshs 11.0
100 Years of Creating Value
Our Strategy
Our strategy is underpinned by our passionate desire to serve our consumers with high-quality brands to suit every occasion and economic level, and our desire to deliver longterm shareholder value to our investors. We are committed to serving the communities in which we operate by ensuring alcohol continues to play a positive role in society as part of a balanced lifestyle.
We have reset our culture, and step changed how we will deliver our refreshed strategic objectives through investment in time and resource across the business to focus on important emerging issues around consumer, digital, ESG and our people. Through our new ways of working, we seek to drive simplification, break down country silos and leverage our Group expertise to enable learnings and best practices exchange across East Africa.
Our strategy is delivered through four execution priorities: bringing vibrancy and dynamism to beer; exploding mainstream spirits with an affordable and aspirational portfolio; accelerating and winning in premium by building aspiration and availability of our brands, and shaping new frontiers by recruiting new consumers within total beverage alcohol.
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Corporate Governance Statement
Overview
Corporate Governance underpins the process and structure used to direct and manage the business and affairs of the Company towards enhancing business prosperity and corporate accountability with the ultimate objective of realising long-term shareholder value, whilst taking into account the interests of other stakeholders. East African Breweries PLC (EABL) is committed to the highest standards of Corporate Governance and Business Ethics. The Company has instituted systems to ensure that high standards of corporate governance are maintained at all levels of the organisation and is in compliance with the Capital Markets Authority Code of Corporate Governance Practices for Issuers of Securities to the Public (the CMA Code) as well as the equivalent guidelines for listed companies in Tanzania and Uganda
Besides complying with the CMA Code, the Company has committed to embedding internal rules of engagement to support corporate governance. These internal guidelines are constituted in the Code of Business Conduct (CoBC) to which every Director and employee makes a commitment to comply. The CoBC is aligned to globally accepted standards and meets the requirements of local laws as well as internationally applicable laws and regulations. It guides activities in dealing with employees, customers, suppliers, competitors, government and the community at large. The CoBC also articulates the Company’s policy on insider trading. Directors, management, staff members and related parties are instructed during closed periods, not to trade in the Company’s shares while in possession of any insider information not available to the public.
Governance Principles
Discipline the commitment by the Group's Senior Management to adhere to behaviour that is universally recognised and accepted to be correct and prudent.
Transparency and disclosure the ease with which an outsider is able to access information relating to the Group and to make meaningful analysis of the Group’s actions, its economic details and the non-financial aspects pertinent to the business.
Independence the extent to which mechanisms have been put in place to minimise or avoid potential conflicts of interest that may exist, such as dominance by a strong Group Managing Director or large shareholder.
Accountability:Individuals or groups in the Group, who make decisions and take actions on specific issues, need to be accountable for their decisions and actions.
Adherence to laws and regulations with regard to management, this pertains to compliance with applicable laws and regulations and implementing standards of relevant best practice. Behaviour must allow for corrective action and for penalising non-adherence or mismanagement. Responsible management would, when necessary, put in place what it would take to set the Group on the right path. While the Board is accountable to the Group’s shareholders, it must act responsively to and with responsibility towards all stakeholders of the Group.
Fairness the systems that exist within the Company must be impartial in taking into account all those that have an interest in the Company and its future. The rights of various groups have to be acknowledged and respected, and the Company must continually focus on stakeholder value free of favouritism.
Our Corporate Governance Framework
EABL is committed to implementing and adhering to good corporate governance and best practice. We have put in place a corporate governance structure which assists to attain the following objectives:
