This archive report was first published on 16 May 2020.
Published on May 16, 2020, East African Breweries Limited (EABL) has issued a cautionary notice to its shareholders and the general public, warning of a 20% drop in profit after tax for the financial year ending June 30, 2020, due to the COVID-19 pandemic.
According to the notice, the COVID-19 global pandemic and subsequent response measures have negatively impacted the company's business, resulting in a decline in profit after tax of approximately 20% compared to the prior year.
Despite posting Sh11.5 billion in profit after tax for the half-year ending June 30, 2019, up from Sh7.3 billion made in 2018, the company's sales have been affected by the closure of pubs, restaurants, and hotels in March due to the outbreak of COVID-19.
However, with the government allowing hotels and restaurants to re-open under tight health protocols, EABL has deployed measures to minimize the impact of the pandemic on its business.
The company's share price at the Nairobi Securities Exchange (NSE) has risen steadily in the past two months, but has since dropped to Sh165 by the close of trading on Friday.
