This archive report was first published on 16 May 2020.
Published on May 16, 2020, East African Breweries Limited has issued a profit warning due to disruptions caused by the COVID-19 pandemic.
The brewer, which is the most dominant player in Kenya's alcohol drinks market, has seen a decline in demand for its products as a result of the pandemic and subsequent measures taken across the region.
According to Dr Martin Oduor-Otieno, Chairman of the EABL Board of Directors, the COVID-19 global pandemic and the subsequent response measures have impacted the company's business negatively.
"The COVID-19 global pandemic and the subsequent response measures taken across the region have impacted our business negatively," Dr Oduor-Otieno said in a statement.
The company's current performance forecast indicates a decline in net earnings of approximately 25% for the financial year ended June 30, 2020.
Despite this, EABL has deployed a raft of measures to minimize the impact of the pandemic on its business.
Just six months prior, in the half year results for the six months ended December 31, 2019, East African Breweries' revenue rose by 10% to KSh 45.9 Billion, driven by higher volumes sold across its markets.
