Diageo’s Kenya Unit First-Half Profit Gains on Higher Beer SalesEric Ombok
Diageo Plc’s Kenyan unit posted an 11 percent rise in first-half profit as the country’s second-biggest company by market value sold more of its Tusker and Senator beers.
Net income rose to 4.62 billion shillings ($50 million) in the six months through December from 4.16 billion shillings a year earlier, East African Breweries Ltd. said in a statement on Thursday. Sales climbed 9 percent to 34.8 billion shillings.
EABL, more than 50 percent owned by London-based Diageo, controls almost all of the Kenyan beer market and half of the country’s spirits business. It has manufacturing plants in Kenya, Uganda and Tanzania and exports to Rwanda, the Democratic Republic of Congo and South Sudan. The company also distributes Diageo products such as Johnnie Walker whisky and Guinness stout.
EABL shares gained 2.5 percent to 332 shillings by the close in Nairobi, and are up 7.8 percent this year. The company is valued at 262.5 billion shillings.