East African Breweries PLC (EABL) has reported a Sh12.198 billion profit after tax for the financial year ended June 30, 2025, as the company braces for potential changes in alcohol sale and advertising regulations.

According to its audited financial results, EABL’s net revenue surged by 49% to Sh128.8 billion, supported by a 2% increase in sales volume across both beer and spirits segments.

The company recorded a profit before tax of Sh19.312 billion, while its income tax bill stood at Sh7.114 billion.

The 12% growth in profit after tax was attributed to robust revenue performance, favorable foreign exchange movements, and lower finance costs following reductions in debt levels and interest rates.

This, the company noted, helped cushion the impact of one-off expenses incurred during the period.

“EABL delivered a strong set of results marked by topline growth and double-digit profit expansion. All our markets recorded growth, fortifying our business position across the region,” said the Group Managing Director and CEO, Jane Karuku.

The brewer’s cash and cash equivalents rose by Sh1.9 billion to Sh12.7 billion, boosted by improved collections and cost-effective debt management. Total debt, including overdrafts, dropped by Sh8.3 billion, contributing to reduced finance costs.

As a result, the EABL Board has recommended a final dividend payout of Sh5.50 per share, bringing the total dividend for the year to Sh8.00 a 14.3% increase from Shh7.00 in 2024.

The proposed dividend will be payable on or about October 28, 2025, to shareholders on record by the close of business on September 16, 2025.

Board Chairman Martin Oduor hailed the performance, crediting strategic execution amid a challenging operating environment.

He noted that while macroeconomic conditions remained stable across the region, the company continued to face external headwinds including the spread of illicit alcohol, rising input costs, and reduced consumer purchasing power due to inflation.

In Kenya, the macro environment was supportive, with declining interest rates and an appreciating shilling.

Tanzania experienced currency depreciation despite stable interest rates, while Uganda maintained economic stability throughout the year.

Meanwhile, looming regulatory reforms could reshape the alcohol industry landscape.

The National Authority for the Campaign Against Alcohol and Drug Abuse (NACADA) has proposed raising the legal drinking age from 18 to 21, citing global research and public health concerns.

Other recommendations include restricting alcohol advertising, online sales, home deliveries, and banning celebrity endorsements.

Despite the proposed reforms and market pressures, EABL expressed confidence in its strategic direction and ability to adapt to the evolving regulatory environment.

Karuku concluded by thanking shareholders, partners, suppliers, and customers for their continued trust and support throughout the financial year.