East African Breweries Limited (EABL) has announced a final dividend of KES 5.50 per share to all shareholders. The one-time dividend will be payable in addition to the interim and special dividends declared by the Board during the year end. This means an increase of 60% in total dividend (KES 12.00) when compared with prior year (2015: KES 7.50)
EABL Chairman, Charles Muchene said, “the Board considers it appropriate to distribute this dividend in recognition of additional income EABL received from the Sale of its subsidiary, Central Glass Industries (CGI) Limited.”
Mr. Muchene added that the sale was a result of a thorough strategic review, following the decision to exit the glass business in order to focus on the company’s core business and unlock additional value to its shareholders.
In addition, Mr Muchene disclosed that the Board is also encouraged by the strong financial outlook for the first half year, ending December 31st 2016, buoyed by a robust performance in premium beers and spirits, as well as prudent cost management within the Group, during the period under review.
To spur further growth in both beer and spirits, EABL Managing Director, Andrew Cowan explained that new innovations will play a key role in driving sales in both first and second half of the year.
“In Kenya, our innovation products have been successful. This year alone, we have launched several successful innovations such as Tusker Premium Cider, Smirnoff Electric Ginsen, Tusker Gold in support of Kenya’s Olympic team. In Uganda, we launched Ngule, which will not only grow our volumes but also increase our market share while Ciroc Ultra-Premium Vodka was launched into the Tanzanian market, to capitalize on the premiumzation drive of Tanzanian consumers who have been recently been exposed to luxury brands. Other successful innovations this year are Kenya Cane Coconut flavour and Chrome Vodka.” Highlighted Mr. Cowan
“Innovation forms a crucial part in our growth strategy. It was a key pillar of growth in 2015/2016 delivering double net sales value contribution to the overall business and, it enables us offer consumers choice and quality for every occasion and price point.” noted Cowan.
He added that though 2015/2016 had its challenges, EABL was able to capitalise on opportunities available and drive the business towards its performance ambition through focused investment in its route to consumer and enhancing its innovations agenda while at the same time driving the organisational change agenda to continue inculcating a culture that is agile and focused on delivering growth.