East African Breweries Plc (EABL) delivered one of its strongest financial performances in recent years, with revenue rising to a record KSh146 billion and net profit surging 49% as robust demand across Kenya, Uganda and Tanzania, coupled with lower finance costs and disciplined cost management, reinforced the brewer’s recovery despite a still-challenging consumer environment.
The regional drinks giant reported 13% growth in net sales value (NSV) for the financial year ended June 30, 2026, pushing net revenue to KSh145.96 billion from KSh128.79 billion a year earlier. Earnings before interest and taxes (EBIT) climbed 27% to KSh32.17 billion, while profit after tax jumped to KSh18.23 billion, up from KSh12.20 billion in the previous year.
The results underscore how EABL is benefiting from a broad-based regional recovery, with each of its three core markets contributing positively to growth, albeit in different ways. Kenya continued to provide scale and earnings stability, Tanzania emerged as the fastest-growing market, while Uganda maintained strong double-digit momentum that further cemented its position as one of the group’s key growth engines.
Unlike previous years when performance was largely anchored on Kenya, the latest results point to a more balanced regional portfolio, reflecting the benefits of EABL’s long-term investments in premium brands, route-to-market expansion, commercial execution and productivity improvements.
Kenya remains the group’s powerhouse
Kenya remained EABL’s largest market, accounting for 60% of the group’s business, while recording 5% growth in net sales value. Its scale continued to make it the group’s largest contributor to overall performance.
Uganda delivers double-digit growth
Uganda recorded 16% growth in net sales value and accounted for 22% of EABL’s business. The market’s double-digit growth strengthened its contribution to the group’s regional performance.
Tanzania emerges as the fastest-growing market
Tanzania recorded the strongest performance, with net sales value increasing by 44%. The market accounted for 18% of EABL’s business, making it the group’s fastest-growing market during the year.
Together, the three markets delivered broad-based growth for EABL, with Kenya providing the largest share of the business, Uganda recording double-digit growth and Tanzania posting the strongest expansion.
Perhaps the most impressive aspect of the results was not revenue growth itself but the pace at which profits expanded.
While revenue increased 13%, profit after tax surged 49%, indicating substantial improvement in operational efficiency.
Chief Executive Officer Jane Karuku attributed the performance to strong volume growth, effective cost management and lower financing costs following balance sheet strengthening. She described FY2026 as one of the company’s strongest performances in recent years, saying the brewer remained confident of delivering sustainable long-term growth despite persistent affordability pressures.
A leaner balance sheet boosts earnings
One of the biggest drivers of EABL’s earnings growth was its continued effort to deleverage its balance sheet.
The brewer reduced total borrowings to KSh29.5 billion from KSh35.9 billion, cutting debt by approximately KSh6.2 billion during the financial year. That translated into a sharp decline in net finance costs, which fell to KSh4.41 billion from KSh5.86 billion, providing a significant lift to bottom-line profitability.
The stronger balance sheet also strengthened shareholders’ equity, which increased to KSh50.6 billion from KSh42.3 billion, while retained earnings climbed to KSh24.9 billion, reflecting the company’s improved profitability and disciplined capital allocation. Total assets expanded to KSh88.7 billion, underpinned by continued investment in production capacity and distribution infrastructure.
The improvement in financing costs is particularly significant because it represents a structural rather than temporary earnings benefit. With lower debt levels, EABL is likely to continue enjoying reduced interest expenses, giving management greater financial flexibility to invest in capacity expansion, innovation and premium brands while sustaining attractive shareholder returns.
Cash generation remains robust despite higher investment
Beyond earnings, EABL demonstrated strong cash-generating ability.
Net cash generated from operating activities rose to KSh41.77 billion, providing sufficient liquidity to fund capital investments, reduce debt and reward shareholders simultaneously. During the year, the brewer invested KSh16.53 billion in property, plant and equipment as it continued expanding manufacturing capacity and strengthening its production network across East Africa.
The company also paid KSh9.35 billion in dividends while ending the year with KSh17.99 billion in cash and cash equivalents, up from KSh12.74 billion a year earlier. The stronger cash position highlights the resilience of EABL’s operating model and its ability to generate healthy free cash flows even while pursuing aggressive capital investment and debt reduction.
The strong financial performance translated directly into improved shareholder returns. EABL’s board recommended a final dividend of KSh8.70 per share, bringing the total dividend for the year to KSh12.70 per share, a 59% increase over the previous financial year. The company also noted that its share price appreciated 43% to close at KSh269 as at June 30, 2026, reflecting growing investor confidence in the brewer’s earnings trajectory and strategy.
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