East African Breweries Limited (EABL) has increased its total dividend by 59 percent to Sh12.70 per share after the brewer posted a record Sh18.2 billion net profit for the financial year ended June 2026.

The company said in an investor briefing that the profitability was boosted by strong demand for mainstream spirits, growth across all its East African markets and sharply lower financing costs.

The company paid shareholders a total dividend of Sh8.00 per share for the financial year ended June 2024 after reporting a net profit of about Sh12.2 billion.

The strong performance comes at a time when the brewer is in the middle of a change of ownership after British drinks giant Diageo Plc agreed to sell its controlling stake in EABL to Japan's Asahi Group Holdings, ending decades of British control of one of East Africa's largest listed companies.

In the 12 months to June this year, EABL grew net sales by 13 percent to Sh146 billion from Sh128.8 billion, becoming the first time the Nairobi Securities Exchange-listed brewer has crossed the $1 billion (about Sh146 billion) revenue milestone, said its Chief Executive Officer Jane Karuku on Thursday.

The company recorded growth across all its markets—Kenya, Uganda and Tanzania—with every major alcohol category posting positive growth.

Kenya remained the largest market, accounting for about 60 percent of group revenues, while Uganda and Tanzania posted even faster growth of 16 percent and 44 percent, respectively.

Sales of Kenya Cane, the affordable spirits brand whose flavoured variants such as ginger, pineapple and coconut have become increasingly popular in bars and entertainment joints, fueled a 30 percent jump in mainstream spirits, making it EABL's fastest-growing alcohol category.

The company's improved bottom line was also supported by a sharp reduction in financing costs as it cut debt by Sh6.2 billion during the year, benefiting further from a lower interest rate environment across East Africa.

The savings significantly boosted profitability, helping lift net profit by 49 percent despite a challenging consumer environment.

There was also increased interest in EABL's newer offerings such as Manyatta, a category the brewer refers to as its “new frontiers” business, alongside ready-to-drink cocktails and other innovations.

The segment grew 26 percent, reflecting changing consumer preferences and EABL's push into new drinking occasions.

According to Ms Karuku, the strong performance reflected broad-based growth across the region.

“All the countries came to the party,” Ms Karuku said, noting that for the first time in recent years, Kenya, Uganda and Tanzania all delivered strong growth, with every major product category contributing positively.

Read: Diageo set to pocket Sh4.47bn dividend on delayed EABL deal

She said EABL had also begun enjoying the benefits of reforms to Kenya's excise tax regime, which ended years of what the industry described as double taxation on alcoholic beverages.

“Years ago, there used to be serious double taxation within beer because they would say there is an inflationary increase, and then there is a very big increase per litre,” said Ms Karuku.

“That was cleaned up three years ago," she added, noting that the stabilisation of the tax regime had encouraged higher consumption volumes.

The Board recommended a final dividend of Sh8.70 per share, bringing the total payout for the year to Sh12.70 per share, signalling confidence in the brewer's cash flows and prospects even as it prepares for a new chapter under Japanese ownership.

→ dakure@ke.nationmedia.com

Follow our WhatsApp channel for the latest business and markets updates