Par Value: 2/-
Closing Price: 168.00
Total Shares Issued: 790774356.00
Market Capitalization: 132,850,091,808
FY Revenues of KES 73.5bn
FY Profit Before Tax 11.7b versus 13.3b -12.00%
FY Profit After Tax 7.3b versus 8.5b -15.00%
FY EPS 7.19 versus 9.71 -26.00%
Final Dividend 5.50
Via Media Release
+5% revenue growth
performance significantly improved in t he second half with net sales +10%
EABL spirit sales increased 8% in the FY
Mainstream spirits portfolio +23%
Innovation delivered good performance contributing 22% to EABL net sales Serengeti Lite in Tanzania, Tusker Cider in Kenya and Uganda Waragi flavours
Gross margin improved by 4%
marketing spend +19%
Profit after Tax declined by 15% as a result of one off tax provisions
In the year we spent 13b on CAPEX a with 7.8b of that being spent on Kisumu Brewery Andrew Cowan
Kenya +1% Uganda +4% Tanzania +41% Andrew Cowan
Final Dividend of 5.50 a share.
Net Sales +5%
Gross Profit +4.00%
Profit after tax -15.00%
Operating Cash Conversion +117%
Total Dividend KES 7.50/share
KENYA 73% of Total Revenues +1%
UGANDA 16% of Total revenues +4.00%
TANZANIA 11% of Total Revenues +41%
Total EABL 100% +5%
Kenya Earnings +1.00% 1. Bottled beer turnaround, sales growing +5% 2. Scotch grew +4% 3. Mainstream spirits growing +22% 4. Senator decline driven by uncertainty and plant shutdown in H1 5. Total spirits in +7% growth constrained by uncontrolled imports
.@tuskerlite and @GuinnessIreland delivering +11% growth in Premium beer
Improved volume performance in H2 (+10% vs +4% in H1) across all categories
Stable regulatory and economic environment in H2 allowed us to deliver highest net sales growth (+10%) for 6 years
Volume (mEU) 12.5 11.7 +7%
Gross sales 135.0 124.1 +9%
BROAD BASED GROWTH WEAKENED BY SENATOR KEG
+4% growth in underlying operating profit offset by one off provision provision for tax exposure
Net borrowings (27.5b) (24.4b)
EPS further deteriorated by higher non-controlling interest (SBL)
Priorities going forward
Opportunities for further growth
Commercialize the Kisumu brewery
Drive margin enhancement
Srengthen re recruitment of bottled beer consumers
Win in premium leading with Scotch and vodka
Go bolder and faster with productivity initiatives
Sustain spirits growth momentum
Accelerate innovations Serengeti Lite, Tusker Cider, Black & White, Uganda Waragi flavours, etc.
DPS of KES 7.5 per share, unch payout ratio 100%
Its a very strong Franchise. Clearly 2 elections a drought and a credit crunch crimped Kenya +1.00%.
The Co. is signalling an H2 acceleration.
Tanzania a stand out.
H1 2017 Earnings through 31st Dec 2017 versus 6 months through 31st Dec 2016
HY Net revenue 36.800b vs. 35.156b +4.676%
HY Cost of sales [20.831b] vs. [18.556b] +12.260%
HY Gross profit 15.969b vs. 16.600b -3.801%
HY Total costs [8.686b] vs. [8.567b] +1.389%
HY PBT 7.283b vs. 8.033b -9.336%
HY PAT 4.952b vs. 5.585b -11.334%
Basic EPS 5.21 vs. 6.28 -17.038%
Cash and cash equivalents at the end of the period 4.585b vs. [3.367b] +236.175%
Dividend per share 2.00 vs. 2.00
Group volumes +4.00% Revenues +5.00%
Net Earnings impacted by weakness in the Kenyan market, excise tax changes in Uganda, increased sales and advertising as well as accelerated capital investment to boost future capacity.
The period characterised as difficult
Volumes +4.00% driven by bottled beer in Kenya and Tanzania and spirits growth across the business.
Excise tax increases in Uganda on imported beer and the weakness in the consumer segment in Kenya, driven by election related uncertainty continued to impact margins [especially on the value segment of the business] as EABL products became less affordable during the period.
EABL depended its capital investments to boost manufacturing capacity, in order to address rising demand in spirits and tap new opportunities presented by value beer.
Innovation contribution +21% driven mainly by new brands such as Tiger Cider, Serengeti Lite, Uganda Waragi Coconut and Chrome Vodka
Overall, EABL is encouraged by the performance in the half year. Board and Management have refreshed their focus under the Companys marketing strategy, expanding route to consumer to broaden products reach and innovating at scale.
2 shilling interim dividend.
They have been making some big ticket investments and repositioning for Growth.
Clearly H2 2017 was tough in Kenya and they have had to navigate some choppy waters which they have done.
East African Breweries Limited FY 2017 results through 30th June 2017 vs. 30th June 2016
FY Revenue 70.247b vs. 64.322b +9.211%
FY Cost of sales [39.117b] vs. [32.110b] +21.822%
FY Gross profit 31.130b vs. 32.212b -3.359%
FY Total costs [17.823b] vs. [18.593b] -4.141%
FY Profit before income tax 13.307b vs. 13.619b -2.291%
FY Profit for the year from continuing operations 8.515b vs. 8.021b +6.159%
FY Profit from discontinued operations vs. 2.249b
FY Profit for the year 8.515b vs. 10.271b -17.097%
EPS 9.71 vs. 12.2 -20.410%
EPS continuing operations 9.71 vs. 9.36 +3.739%
Cash and cash equivalents at the end of the year 3.318b vs. [3.954b] +183.915%
Total Equity 11.988b vs. 10.867b +10.316%
Net Assets 44.683b vs. 37.714b +18.479%
Final dividend 5.50
Total dividend 7.50 vs. 7.50
EABLs business demonstrated resilience despite a challenging trading environment across East Africa, mainly characterised by inflationary pressures and regulatory volatility delivering a solid set of financial results.
+6.00% Profit Growth for the year from continued operations
Group volumes accelerated 5% good performance in mainstream spirit and value beer, with both delivering double digit growth.
Net Sales performance +9.00% mainly driven by Kenya which had good spirits and value beer growth. However, this was impacted by weak bottled beer sales driven by excise tax increases, making EABL products less affordable.
Drought related inflationary pressure impacted consumers disposable incomes.
Kenya contributed 74% of EABLs sales.
Uganda revenue +7.00%
Tanzania revenue -12.00%
Key Innovations Tusker Cider, Pilsner 7, Smirnoff Electric Ginseng in Kenya, Ngule in Uganda and Serengeti lite in Tanzania.
CAPEX +14% to 5.7b
15b investment in Kisumu Brewery
EABL management is very encouraged by trends in H2 in Kenya, during which the business saw better performance in premium and mainstream beer.
In Tanzania the Co made a settlement with Fair Competition Commission after several years of uncertainty and business was back in growth in Q4.
Final Dividend 5.50 a share Total Dividend 7.50 a share
The -17.097% reduction in FY PAT might grab the headlines but remember that EABL was lapping FY 16 were there was a 2.249b extraordinary Gain. Take that out and continuing operations served up a +6.159% gain.
Headline FY Revenue was +9.211% which is high and healthy against what was a volatile backdrop.
The Kisumu Brewery is a big bold bet on value beer and there is plenty of scope here.
regulatory volatility is a de rigour phrase these days.
Final Dividend is worth 2.08% of yield.
I thought these results were constructive and support a higher share price and a positive re-rating.
H1 Earnings through 31st December 2016 versus 31st December 2015
H1 Net revenue 35.156b vs. 37.514b -6.286%
H1 Cost of sales [18.556b] vs. [20.085b] -7.613%
H1 Gross profit 16.600b vs. 17.429b -4.756%
H1 Total costs [8.567b] vs. [9.507b] -9.887%
H1 PBT 8.033b vs. 7.922b +1.401%
H1 PAT (Continuing operations) 5.585b vs. 5.484b +1.842%
H1 PAT (from discontinued operations) vs. 2.249b
H1 PAT (for the year) 5.585b vs. 7.733b -27.777%
H1 EPS (Continuing operations) 6.28 vs. 6.29 -0.159%
H1 EPS 6.28 vs. 9.14 -31.291%
Cash & cash equivalents at the end of the year [3.367b] vs. 5.802b -158.032%
Interim dividend 2 share
backdrop of significant excise increase in Kenya last year and tough economic and operating conditions elsewhere in the region
Kenya delivered flat net sales with double digit growth in spirits and Senator Keg which offset the impact of price increase on bottled beer
Net Sales growth of 7% in Uganda
Tanzania faced a challenging consumer environment which negatively impacted consumer spend Net Sales declined by 7% despite double digit growth in Pilsner and triple digit in reserve spirits
Innovation pipeline Tusker Cider Smirnoff Ice Electric Ginseng and Black Bell
On a like for like basis net sales were flat but adverse foreign exchange movements and impact of excise tax increase resulted in a 6% decline in reported net sales
Operating margin improvement to 27% from 25%
The company said Kenya makes up 70 percent of its profits, and this had been affected by tax hikes.
There have been four major excise duty increases affecting bottled beer volumes in the last five years, with the most aggressive one taking effect in December 2015 a 43 percent rise in duty, Andrew Cowan, its group managing director and chief executive, said.
This was the highest excise duty increase in Africa, he said.
Organic Earnings were flat once you strip out the Previous Half Years extraordinary gain.
Interesting colour on Kenya Tanzania and Uganda
I would have thought that these results are fully priced in.
FY Net Revenue 64.322b vs. 64.420b -0.152%
FY Cost of sales [32.110b] vs. [32.389b] -0.861%
FY Gross profit 32.212b vs. 32.031b +0.565%
FY Total costs [18.593b] vs. [17.880b] +3.988%
PBT 13.619b vs. 14.151b -3.759%
PAT (Continuing operations) 8.021b vs. 9.535b -15.878%
Profit from discontinued operations 2.249b vs. [0.040b] +5,722.5%
PAT (for the year) 10.270b vs. 9.575b +7.258%
EPS 12.20 vs. 11.32 +7.774%
Cash and cash equivalents at the end of the year [3.954b] vs. [1.392b] -184.052%
Final dividend 5.50
Full year dividend 7.50 vs. 7.50
Company Commentary and Presentation
Gross Profit +1.00% to 32.2b
Profit for the Year +7% 10.3b
Cash generated from Operations +32% to 27.9b
Finance Costs -20.00% to 3.3b
Total Dividend 7.50 a share
overall the Company defied a challenging operating environment especially in South Sudan where volumes fell by 60% to deliver 25% growth in volumes, buoyed by strong growth in spirits and Senator.
Kenya Revenue Growth 16% Uganda 5% Tanzania 12%
134 per cent growth in the sales of Senator.
a 27 per cent drop in sales of its flagship brand, Tusker
Senator grew in Kenya following the roll back of the duty increase early in the year and momentum was sustained throughout the year, said Diageo, which owns 50.02 per cent of EABL.
This more than offset the decline in Tusker, which was impacted by the duty increase in Kenya and currency volatility in the markets.
Mainstream spirits such as Kenya Cane and Kane Extra saw sales increase by high double digits in the fullyear to June 2016 due to what Diageo said was improved route to consumer initiatives.
Reserve spirits (Ciroc and Singleton) also performed well due to enhanced distribution and activation by brand ambassadors while ready to drink brands Smirnoff Ice Double Black and Guarana were boosted by price increases, Diageo said.
Charles Ireland tidied up the Balance Sheet, reduced leverage and these Results confirm a repositioning of EABL firmly into the Mass Market.
Revenue 37.513921b vs. 34.657876b +8.241%
Cost of sales [20.084503b] vs. [17.527170b] +14.591%
Gross profit 17.429418b vs. 17.130706b +1.743%
Selling and distribution costs [3.244707b] vs. [3.188071b] +1.776%
Administrative expenses [5.094642b] vs. [4.397458b] +15.854%
Other income [expenses] 191.841m vs. [447.624m] +142.858%
Finance income 187.589m vs. 11.553m +1,523.725%
Finance costs [1.547213b] vs. [2.193056b] -29.449%
Profit before income tax 7.922286b vs. 6.916050b +15.549%
Profit for the period from continued operations 5.484510b vs. 4.723614b +16.108%
Profit [loss] from discontinued operations 2.249428b vs. 0.101497b +2,116.251%
Profit for the period 7.733938b vs. 4.622117b +67.325%
EPS 9.13 vs. 5.23 +74.570%
EPS (continuing operations) 6.28 vs. 5.37 +16.946%
Net assets 43.116692b vs. 42.009009b +2.637%
Cash and cash equivalents at the end of the period 5.801563b vs. 2.943064b +97.127%
Net Sales growth of 8%.
Double digit growth in 5/8 product segments and recovery in Senator Keg post the review in duty remission in Kenya
Kenya delivered 22% net sales growth mainly driven by a good performance from Senator Keg and spirits. Innovations led by Chrome Vodka, Kenya Cane coconut and Allsopps Stout also led to the growth.
Net Sales in Uganda and Tanzania remained flat in local currency terms
We experienced a decline in export markets mainly due to the volatile environment in South Sudan
Cash flow from operating activities increased by 51% to 11.4b
Total net borrowings decreased by 8.5b as a result of strong operating cash flow and the sale of CGI contributing to a 38% decrease in net finance costs in the period
Total Profit for the half grew by 67% to 7.7b inclusive of the contribution from the disposal of CGI and netting off 1.0b of negative impact from South Sudanese pound currency devaluation
Interim dividend 2.00 versus 1.50 +33%
EABL recorded strong growth of Senator Keg. PHOTO | FILE @BD_Africa
Senator Keg whose volumes more than doubled following a lowering of excise tax mid last year.
EABL, which is 50.02 per cent owned by multinational brewer Diageo, saw its net sales from the South Sudan business decrease 74 per cent, the Kenyan business grew 22 per cent while Uganda and Tanzania registered seven and 12 per cent drop in net sales respectively.
Sales of mainstream beers, including Tusker, dropped by 10 per cent while premium beers such as Tusker Malt and Guinness grew by a similar margin.
The brewer recently launched a 300ml Tusker bottle targeting lower income consumers seeking to increase sales of its flagship beer.
Its spirits brands like Kenya Cane, Ugandas Waragi and Kane Extra reported net sales growth of 14 per cent while highend brands like Ciroc and Singleton recorded strong growth of 45 per cent.
Organic EPS accelerated +16.946%
Strong Turnaround in cash Position
Interim Dividend +33% is a strong signal.
Kenya evidently a stand Out.
Full Year Revenue 64.420458b versus 60.748887b +6.00%
Full Year Cost of Sales [32.389041b] versus [30.586648b] +6.00%
Full Year Gross Profit 32.031417b versus 30.162239b +6.00%
FY Selling and Distribution Costs [6.038162b] versus [5.761488b] +5.00%
Full Year Administrative Expenses [7.871377b] versus [9.330026b] improved 16%
Full Year Other Income 103.746m versus [422.125m]
Finance Costs [4.074380b] versus [4.343869b] -4.00%
Full Year profit before Income Tax 14.151244b versus 10.389673b
Full Year Profit After Tax 9.574905b versus 6.858608b +40.00% [underlying profit +16%]
Full Year EPS 11.31 versus 8.21 +37.775%
Full Year Dividend 6 shillings a share [+ Interim 1.50 a share] 7.50 versus 5.50 +36.36%
From the Company presentation
Kenya 61% overall contribution to EABL +3.00%
Uganda 18% overall contribution +7.00% [Local Currency FY]
Tanzania 11% +2.00% [Local ccy]
EABL 10% and +48%
Premium Beer +17% RTDs +70%
Spirits Reserve Spirits +71% Premium Spirits +31% Emerging Spirits +32%2
Cites strong performance of Guinness
Spirits grew +31% across the Region
Growth in RTD +70%
Total Group Borrowings decreased by 3.2b
Net Reduction in average interest rate costs to 11.4%
We are disposing Central Glass Industries
Really strong Earnings. And consider the Spirits Acceleration and the Fact that Senator [where the excise duty remission so volumes spike 100% recently] is not a factor.
I had been saying for a while that Mr. Ireland had been optimising the business and this Earnings Release was proof of that.
I have conducted an Interview with Charles and will post that imminently.
EABL reports Interim results
First Half Revenue 34.768b versus 31.858b +9.1342%
First Half Cost of Sales [17.657b] versus [16.127b] +9.487%
First Half Gross Profit 17.111b versus 15.731b
First Half Selling and Distribution Costs [3.188b] versus [3.047b] +4.6275%
First Half Administrative expenses [4.397b] versus [4.507b] -2.4406%
First Half other Expenses [536m] versus [50m]
First Half Operating Profit 8.990b versus 8.127b
First Half Net Finance Costs [2.187b] versus [1.923b] +13.72%
First Half Profit after Tax 4.622b versus 4.161b +11.079%
First Half Earnings Per Share 5.23 versus 4.99 +4.809%
Interim Dividend 1.50 per share unchanged
EABL borrowings +5.5b in H1
Tweets from the Earnings Release Media Briefing
@alykhansatchu EABL first half Earnings @serenahotels @Diageo_News @NSEKenya
@alykhansatchu EABL Revenue by Geographical distribution @NSEKenya
@alykhansatchu Premium Spirits +32% Reserve Spirits +67% EABL H1 Earnings @NSEKenya
@alykhansatchu Senator is now of marginal importance says Charles Ireland #EABL
@alykhansatchu Senator was created as a replacement for illicits like Changaa and Busaa we had 12,000 Outlets EABL H1
@alykhansatchu Premium Beer +13% in Kenya due to @GuinnessIreland #EABL @NSEKenya
@alykhansatchu Uganda Waragi volumes +32% EABL Tanzania stands out H1 +17%
@alykhansatchu EABLi +118% very strong performance in South Sudan constrained by unavailability of dollars
@alykhansatchu Spirits +35% H1 EABL @NSEKenya
@alykhansatchu @tuskerlager flat year on year in Kenya Joe Muganda EABL Kenya
@alykhansatchu We are trying to bring an acting like owner mindset Charles Ireland EABL
These results beat the Street Estimates.
Revenue expansion of 9.1342% is commendable [and this will get juiced in 2015 via the Oil Price Stimulus]
They have bounced Tanzania, Kenya was soft, South Sudan Stood out.
Spirits gaining traction.
I shall leave the Final Comment to Charles Ireland a Friend and Neighbour and sometimes has been to complain about the unruliness of my Hedge
@alykhansatchu All markets and all sectors ex Senator are in growth mode Charles Ireland EABL @Diageo_News
Full Year Net Revenue 61.292176b versus 59.061875b [restated] +3.776%
FY Cost of Sales [31.098550b] versus [31.562560b]
FY Gross Profit 30.193626B versus 27.499315b +10.00%
FY Total Costs [19.787007b] versus [16.384396b]
Full Year Profit before Tax 10.406619b versus 11.114919b
Full Year income Tax Expense [3.548011b] versus [4.592719b]
Full Year Profit After Tax 6.858608b versus 6.522200b +5.157%
Full Year Earnings Per share 8.22 versus 8.55 -3.85%
Full Year diluted Earnings Per Share 8.21 versus 8.54 -3.85%
Final Dividend 4.00 shillings a share +1.50 Interim Dividend
Kenya [64% of NSV] 1% decline in NSV
Uganda [18% of NSV] Net Sales Growth +13%
Tanzania [11% of NSV] Net Sales Growth -1.00%
Export Markets [7% of NSV] +50% Net Sales Growth
One of staff reorganisation costs of 1.2b
Tusker Lager +17%
We already knew Senator Volumes have cratered
Net Capex of 6.8b
@alykhansatchu EABL reports Reserve Spirits +60% year on year Emerging spirits +75% Charles Ireland EABL Full Year @Diageo_News
@alykhansatchu Net Sales Volume and by geography EABL
It was indeed a pleasure interviewing Charles Ireland CEO EABL after the release of Full Year Earnings @Diageo_News
I thought these results were better than expected given the Known Known that was Senator.
FY Revenue Growth of +3.776% was a significant achievement in those circumstances.
Strong Growth at Tusker and Guinness and Reserve Spirits +60% and Emerging Spirits +75%.
I thought these results beat estimates by a margin
6 Months 31st December 2013 versus 6 months through December 2012
H1 Revenue 31.858b versus 30.633b +4.00%
Cost of Sales [16.127b] versus [16.234b] -1.00%
Gross Profit 15.731b versus 14.399b +9.00%
Selling and Distribution [3.047b] versus [2.541b] +20.00%
Administrative Expenses [4.507b] versus [3.564b] +26.00%
H1 Operating Profit 8.127b versus 7.858b +3.00%
Net Finance Costs [2.043b] versus [2.061]
H1 PBT 6.084b versus 5.797b +5.00%
H1 PAT 4.161b versus 3.982b +4.00%
H1 EPS 4.99 versus 4.75 +5.05%
Interim Dividend unchanged 1.50 a share
The Board of Directors of East African Breweries Limited (EABL) is pleased to announce its half year results for the six months ending 31st December 2013. EABL delivered net revenue growth of 4% and profit after tax growth of 4% in spite of significant challenges in the period.
In Kenya, the business experienced a strong first quarter but the implementation of excise duty on Senator Keg on 1st October led to a significant volume reduction on that brand during the second quarter. Management are reviewing its position in the emerging beer category to ensure sustainability. Strong performance of Tusker, Guinness and spirits partly mitigated that impact, with overall net revenue growing by 6%.
Performance in Uganda was robust, despite a weak consumer economy. Net revenue in Uganda grew by 17% due to improved availability, mix and pricing initiatives.
In Tanzania, net revenue of Serengeti Breweries Limited declined by 11% due to the short term impact of route to consumer initiatives which led to destocking by the wholesaler channel as we moved to an exclusive distribution model. We continue to invest in our business and brands and are confident that this new model is the optimal platform for future growth.
Our international exports business was impacted by political instability in South Sudan in the second quarter but despite this grew net revenue by 6%.
Across the region, we experienced good double digit net sales growth in our premium and mainstream beer and spirits categories. Emerging beer net sales declined by 24% primarily due to the impact of the reduction of the duty remission on Senator in Kenya. However, this was partly offset by strong growth in emerging spirits.
Our cost of sales declined by 1% due to a reduction in raw material costs and the implementation of initiatives to optimise production processes.
We continued our strategy of investing ahead of growth in our brands, increasing our selling and distribution costs by 20% compared to last year. Our brand portfolio was supported by a number of marketing campaigns including Tusker Project Fame 6, Be the Manager campaign for Guinness, Welcome to the Bell National campaign for Bell Lager and the Serengeti Premium Lager Fiesta events. Spirits campaigns included Johnnie Walker Red Labels Step Up campaign which was enhanced by the inaugural Love Whisky Festival in Kenya.
Administrative expenses grew by 26%, with underlying growth of 13%, as a result of the impact of one off costs related to the recent organisational restructuring, as well as incremental investments to streamline back office processes in Tanzania.
During the period net financing costs remained broadly flat. Profit attributable to shareholders improved by 5% to Kshs 3.9bn.
The Board is satisfied with this positive performance in spite of the challenges faced, and expects similar performance to continue in the short term, as the business continues to invest in longer term growth.
Senator Volumes EABL @Diageo_News look what happened after the Excise Tax was raised
EABL H1 2014 EARNINGS DATA beat expectations by a mile
EABL Country Breakdown H1 Earnings
EABL H1 2014 Tusker +17% Guinness +24%
EABL Premium and mainstream data @Diageo_News Reserve Spirits +50% Emerging Spirits triple digit gain H1 Earnings
Uganda +17% H1 Thats strong EABL @Diageo_News
Charles Ireland CEO EABL @Diageo_News 1st Half results 44% beverage alchohol share in EAC
These were much better Results than many expected given the Excise Duty correlated Senator Slump. [-85% see Twitpic below] Uganda was a stand out at +17%. Tanzania was -11.00% but we always knew there would be some work to be done. Reserve Spirits was up +50% and Emerging Spirits was more than 100%.
Tusker the Flagship was +17%
Interestingly cost of borrowing [notwithstanding some more bulking up] was lower.
I thought these Results beat Street Estimates by a Mile.
FY Revenue 59.061875b versus 55.522166b +6.375%
FY Cost of Sales [31.562560b] versus [28.657047b]
FY Gross Profit 27.499315b versus 26.865119b
FY Other Income 140.54m versus 3.797208b -99.62%
FY PBT 11.114919b versus 15.253049b -27.1298%
FY PAT 6.994745b versus 11.186113b -37.469%
FY EPS 8.83 versus 13.46 -34.39%
Final Dividend 4 shillings a share [Interim Dividend 1.50 a share] Total 5.50 versus 8.5 Previous Year -35.294%
A Selection of Tweets from the FY Earnings Release
AlyKhan Satchu @alykhansatchu
The inestimable charm of @serenahotels Nairobi in early morning an oasis in the City morning from the EABL FY Earnings release @Diageo_News
EABL Kenya 67% FY Net Sales Premium Beer +18% RTDs +47% Guinness +20%
EABL Reserve Spirits +276% Premium Spirits +22% Mainstream Spirits -6.00% Emerging Spirits +32%
EABL FY Net Sales +6% Volumes +3% FY Operating Profit +0.2% @Diageo_News
I will upload the Presentations when I receive them.
The FY Profits Warning issued on 30th July 2013 forewarned. FY Revenue of +6.375% confirms the Growth Story is in tact. The Year on Year other Income comparison was -99.62%. The Previous FY EABL had booked a 3.797208b one off Gain.
The Trailing PE is 34.5 and is now rich.
The +276% Reserve Spirits Acceleration is eye catching.
EABL H1 Earnings through December 2012 versus 6 months through 2011
Net Revenue 30.633b versus 27.777b +10.28188%
Cost of Sales [16.234b] versus [14.321b] +13.358%
Gross Profit 14.399b versus 13.456b +7.008%
Selling and Distribution Costs [2.541b] versus [2.311b]
Administration Expenses [3.564b] versus [3.699b]
Other Operating Expenses [0.436b] versus [0.134b]
Profit from Operations 7.858b versus 7.312b +7.467%
Net Finance Costs [2.061b] versus [0.642b] +221%
H1 Profit Before Taxation 5.797b versus 6.670b -13.088455%
H1 Profit After Taxation 3.982b versus 4.877b -18.351445%
H1 Earnings Per Share 4.75 versus 5.55 -14.4144%
Interim Dividend 1.50 per share versus 2.50 Last Time
Cash from Operating Activities 7.424b
Net Revenue Kenya grew 12%
Uganda Breweries +3%
Serengeti Tanzania +16%
Total Beer Portfolio grew 11%
Total Spirits Portfolio grew 9%
Premium Spirits Portfolio +45%
New Beer Brands introduced Balozi and Kibo Gold
Jebel Gin Innovation
The Headline Numbers of H1 PBT -13.088455% and H1 PAT -18.351445% might catch Peoples Attention but beneath that Surface lies a Muscular Business.
The Half Year on Year Comparison is not flattered by the Financing Costs around the Purchase of 20% of Kenya Breweries.
Devlin Hainsworth in My Interview spoke to an H2 Acceleration [with the Proviso that The Election goes well].
EABL is investing now to embed its 91 Year Advantage and I think Investors will look through the Near Term Noise and like the Underlying Growth Trajectory.
Top Line Growth of 11% in Beer and 9% in Spirits is more than solid.
Devlin was very excited about Jebel Gin which is being sold at 100 Shillings.
300.00 will be a Floor and then I expect the Price to turn higher.
EABL Net sales By Geography Twitpic
Devlin Hainsworth talks about Premiumisation and the World of Spirits EABL @Diageo_News Twitpic
@CKirubi asks the 1st Question EABL Investor Briefing @Diageo_News
FY 2012 versus FY 2011
Consolidated Income Statement
Revenue 55.522166b versus 44.895037b +23.67105522%
Cost of Sales 28.657047b versus 22.828144b +25.533845%
Gross Profit 26.865119b versus 22.066893b +21.74400356%
Other Income 3.797208b versus 0.320673b +1084%
Administration Expenses 7.450204b versus 6.474500b +15.069951%
Finance Costs 4.562537b versus 0.272156b +1576%
Full Year Profit Before Tax 15.253049b versus 12.258989b +24.42338434%
Full Year Profit After Tax 11.186113b versus 9.023660b +23.9642561%
Earnings Per Share 13.46 versus 9.30 +44.731182%
Borrowings 19.982236b versus 3.917688b
Final Dividend 6.00 shillings a share Unchanged
Final Interim 8.50
Via The Investor Relations Briefing Document
In this Region since 1922
TBL Share Gain 3.646339b
Beer Net Sales +21%
Uganda Net Sales +38%
Tanzania Net Sales +76%
EABLi Net Sales +30%
CAPEX Investment Moshi Brewery, Uganda Mash Filter, Kenya Canning Line
Serengeti Beer +49%
Johnnie Walker +74%
Spirit Net Sales +47%
Twitpics from the Presentation
A Golden Era for the Business says EABL MD Devlin Hainsworth @Diageo_News Twitpic
We are seeing significant Premiumisation across East #Africa Devlin Hainsworth EABL @Diageo_News Twitpic
Predicable and Predicted strong FY Earnings.
Full Year Profit Before Tax 15.253049b versus 12.258989b +24.42338434%
Full Year Profit After Tax 11.186113b versus 9.023660b +23.9642561%
Earnings Per Share 13.46 versus 9.30 +44.731182%
is a Strong Score Card any which way you cut it.
Real Acceleration across Spirits and across key Brands and Geographies.
I did an Interview with the CEO After the Results Release and he was predictably bullish.
H1 2011 versus H1 2010 Results Swot Analysis
Revenue 27.777b versus 20.463b +35.74%
Net Finance Costs [642m] versus 50
Profit Before Income Tax 6.67b versus 6.165b
Profit After Tax 4.877b versus 4.152b +17.461%
Earnings Per Share 5.55 versus 4.03 +37.71%
Total Comprehensive Income 4.561b versus 3.990b
Long Term Borrowings 23.32b versus 3.918b
Available for Sale Investments Tanzania Breweries 2.465b versus 6.3b Actual Sale before Deductions which will feed in at FY and it looks real Material
Interim Dividend 2.50 a share
Purchase of NCI share of Kenya Breweries 20.876b
The Impressive Performance is a direct result of sustained Focus on our Grwoth Strategy, anchored on our Strong Brands, innovations Tusker growing 21%solid performance in premium and mainstream Spirits Seni Adetu.
Uganda showing strong Momentum.
My Twitpic comments from the Investor Briefing are here
I thought these H1 Results plain muscular. PAT accelerated 17.461% and EPS +37.71% with a Windfall Gain still to be bagged in the FY Earnings Release from the TBL Share Sale. Clearly EABL is investing aggressively in Tanzania at this Point, has gained serious Traction in Uganda and the Great Lakes Region.
I cannot Fault these Results and I see an Inflection Point in the Earnings Trajectory here.
If we need to borrow to expand we will Seni Adetu #EABL #Diageo #Africa #Beer
EABL Vision Statement Twitpic
Do Watch Seni Adetu at #Mindspeak RICH TV
The Power Point presentation is here
FY Results to 30th June 2011 versus FY Results June 2010
Net Revenue 44.895b versus 38.679b +16%
Cost of Sales 22.831b versus 19.537b +17%
Selling and Distributions costs 3.491b +36%
PBT 12.249b versus 12.569b -3.00%
PAT 9.014b versus 8.838b +2.00%
EPS 9.30 versus 9.09 +2.00%
Final Dividend 6.25 Total Dividend PayOut 8.75
Dividend Yield 5.47%
Serengeti now consolidated into Accounts
I thought these Results beat the Street Estimates. Operationally, 2011 has presented a lot of challenges. Also, they are taking a more
offensive Position in the Region. I think they have executed both Good Defence and Good Offence. EABL trades at a PE Premium to the NSE and
the Dividend Yield is 5.47% which is surely attractive.
1st Half Results End December 2010 Swot Analysis
Interim Dividend 2.50
Revenue 20.463 Billion versus 18.617b
operating Profit 6.115b versus 5.342b
Profit After Tax 4.152b versus 4.223b
EPS 4.03 versus 4.41
CIC Insurance Co reports H1 Earnings here