East African Breweries (EABL) has posted reduced profits in the half year ending December 2023. The brewer’s earning dropped by at least 22% to KSH. 6.7B, which is attributed to high operating costs, increased debt service expenses and weakening of the shilling.
The decline in earnings has led the PLC to cut its interim dividend by 73.3% to KSH. 1 per share, down from KSH. 3.75 per share.
EABL’s dividend has been trending down since the year ended June 2022 when it made a peak distribution of KSH. 11 per share after registering a strong recovery from the impact of the Covid-19 pandemic.

EABL MD Jane Karuku says the company in this second half is now focusing on cutting costs to grow margins besides making selective investments in its brands and businesses.