Diageo’s Kenya Unit Posts 38% Drop in Annual Profit on Costs

Diageo Plc’s Kenyan unit, East African Breweries Ltd., posted a 38 percent drop in full-year profit that missed estimates as costs increased and after a one-time gain last year wasn’t repeated.

Net income fell to 6.94 billion shillings ($79 million) in the 12 months through June from 11.19 billion shillings a year earlier, the company said in a statement e-mailed by the Nairobi Securities Exchange today. That missed the 8.19 billion shilling median forecast of four analysts surveyed by Bloomberg. Cost of sales grew 10 percent to 31.56 billion shillings, exceeding a