The East African Breweries Limited (EABL) has announced a 47.3 per cent drop in its half-year profits for period ended December 2020 to Sh3.8 billion from Sh7.2 billion last year.

EABL has attributed the drastic dip in profits to decreased sales owing to the strict measures initiated to curb Covid-19 that saw bars closed for months as well as a one-off tax provision.

However, the sales showed growth compared to the period between January and June 2020 at Sh44.5 billion but increased slower than Sh45.9 billion reported in December 2019.

EABL sales in the Kenyan market dipped by 10 per cent while sales in Tanzania and Uganda ironically grew by 17 per cent and 13 per cent respectively.

The regional brewer in July reported a 39 per cent plunge in full year earnings to Sh7 billion as the overall sales also slackened by 9 per cent.

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EABL administrative expenses dropped 6 per cent to Sh4.3 billion on discretionary spending, which saw cash generated from operations grow to Sh17.9 billion from Sh15.2 billion.

Liabilities grew to Sh41.4 billion from Sh36.9 billion in 2020, even as EABL relied on e-commerce to push sales as the state continues to restrict bar and entertainment joints.

But the brewer remains optimistic of a rebound in the second half of its Financial Year.

“We remain cautiously optimistic about the second half of the year, not least because the pandemic and potential shifts in our trading environment present risks on the horizon,” said EABL Group Managing Director Jane Karuku.

She added, “We will continue to stay close to our consumers, innovate to address the consumer patterns, tightly manage our costs, and with agility reallocate resources to address the dynamic operating environment.”