New Vision (Kampala)

9 September 2012

Uganda: EABL Shareholders for Sh258 Dividend

DIRECTORS of East African Breweries (EABL) have recommended a sh258 dividend per share for the 2012 full year coming on the back of strong performance.

If approved that the dividends shall be paid on or about October 26. The interim half-year dividend was sh73 per share.

Announcing the full-year 2012 results recently to Ugandan investors, Uganda Breweries managing director Alasdair Musselwhite said the biggest threats the industry faced in the year were the currency and inflationary pressures and shocks, especially in the second quarter.

This hit consumer disposable income and thus uptake of products. Musselwhite, however, gave a positive outlook of the future, saying the low per capita beer consumption and the emerging middle-class offer opportunity for future growth and new markets for spirits respectively.

"Going forward, there will be increased investment to win share of beer across the region," said Musselwhite, adding that more opportunities exist in the stable macroeconomic environment.

Net beer sales were up 21%, while net spirit sales rose to 47%.

Uganda came second in net sales (38%) after Tanzania (76%), while Kenya stood at 16%. Uganda's overall performance was driven by increased marketing.

After tax profits grew to about sh335.4b, from sh270b, due to strong sales in their spirit brands, with beer sales largely constant for the year ended June 2012.

On the market, share price for EABL on the Uganda Securities Exchange fell slightly to sh6703, from the sh6889 of the past two weeks.

Stanbic Bank sold 500,000 shares to pick sh10m at an average of sh20 per share.

New Vision picked sh4.5m, from 7,500 shares sold at sh600 per share.

National Insurance Corporation also sold 10,000 shares, realising sh400,000 in turnover. dfcu Bank sold 100 shares, gaining sh100,000 in turnover.

Bank of Baroda picked sh3.2m after selling 12,982 shares. Total turnover was sh18.2m, from 530,582 shares sold.

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