admin East African Breweries Limited (EABL) financial results for the year ended June 2022 indicate that revenue for the Uganda Securities Exchange (USE) listed firm’s local unit, Uganda Breweries Limited (UBL) went up 24%.
UBL’s financials were amalgamated into EABL’s data which indicated that the group more than doubled its profit at the end of June 2022 as restrictions to curb the spread on Covid-19 were lifted.
EABL’s net profit grew 124% to Ksh15.57 billion (Ush505.8billion), the highest in five years.
Group Chairman Martin Oduor-Otieno said at a media briefing in Nairobi that although recovery in the East African economies had aided sales, runaway inflation, foreign exchange currency fluctuation and reduced consumer purchasing power in the second half of the year had posed challenges.
Group Chief Executive Jane Karuku pointed out at the same briefing that the results showed that EABL was ahead of its pre-Covid-19 growth trajectory. However, she pointed out that the challenging macro-economic environment, volatile tax and regulatory policy will continue to impact bottom-line.
UBL injects Ush20 billion into Ugandan farming
Uganda Breweries through its local raw material programme(LRM), injects Ugx 20 billion annually into farming communities and value chains to obtain locally-grown raw materials for its brewing operations.
The company has also invested over USD $10 million into the local grain sector promotion including large sorghum trials in Ngenge/Kapchorwa and Nwoya in the last seven years.
Uganda Breweries through its local raw material programme(LRM), injects Shs 20 billion annually into farming communities and value chains to obtain locally-grown raw materials for its brewing operations. The company has also invested over USD $10 million into the local grain sector promotion including large sorghum trials in Ngenge/Kapchorwa and Nwoya in the last seven years.
Under the LRM programme, UBL supports hundreds of farmers with quality seeds and modern farming equipment, as well as gives them the necessary trainings throughout the seasons for improved productivity. UBL also provides ready market for farmers’ produce, which in turn is used to manufacture UBL beer.
The farmers were taken on a guided tour around the beer production plant and taken through a step by step process of brewing beer. They were also given training on how to achieve the right quality products and taught how to identify good grain.
The farmers commended Uganda Breweries for continuously sustaining their income.
