East African Breweries Ltd. (EABL) reported Ksh18.2 billion ($140.66 million) in net profit for the financial year ended June 30, 2026, as stronger revenue, higher sales volumes and lower financing costs helped lift earnings.

The profit rose 49% from Ksh12.2 billion ($94.3 million) a year earlier, giving the Nairobi-based brewer one of its strongest financial performances in recent years.

Revenue rises as demand holds

EABL’s revenue increased 13% to Ksh146 billion ($1.13 billion) from Ksh128.8 billion ($995.63 million), supported by demand for its beer and spirits brands in Kenya, Uganda and Tanzania.

Cost of sales also rose, increasing 12% to Ksh83.8 billion ($647.77 million) from Ksh74.7 billion ($577.43 million). Despite higher costs, the company benefited from stronger operating performance and lower financing expenses.

Total debt fell by Ksh6.2 billion ($47.92 million) to Ksh33 billion ($255.1 million), compared with Ksh39 billion ($301.49 million) a year earlier, helping strengthen the company’s balance sheet.

Group Managing Director and CEO Jane Karuku said the results reflected higher volumes, tighter cost control and lower financing costs.

“We delivered one of our strongest performances in recent years,” Karuku said, noting the 13% increase in net revenue and 49% rise in profit after tax.

She said EABL would continue investing in its brands, business and communities while focusing on long-term value for shareholders.

The company said the broader economic environment across East Africa remained relatively stable during the year, although higher energy and food costs added some pressure toward the end of the period.

Equity and dividend increase

EABL’s total equity rose 19.7% to Ksh50.62 billion ($391.3 million) from Ksh42.3 billion ($326.98 million), while total assets increased to Ksh134.7 billion ($1.04 billion) from Ksh131.05 billion ($1.01 million).

The stronger results also supported a higher shareholder payout. The board recommended a final dividend of Ksh8.70 ($0.06) per share, taking the total dividend for the year to Ksh12.70 ($0.09), up 59% from the previous year.

EABL also raised concerns about illicit alcohol consumption in East Africa, saying the issue requires closer cooperation between governments, regulators and industry players to protect consumers.

Diageo sale remains in focus

The results come as EABL prepares for a major change in its ownership. In December, London-listed Diageo agreed to sell its 65% controlling stake in EABL to Japan’s Asahi Group Holdings for about $2.3 billion. The deal is part of Diageo’s efforts to reduce debt and reshape its business.

A Kenyan court dismissed a bid in April to block the transaction in a case brought by beer distributor Bia Tosha over litigation dating to 2016.

“This transaction is strictly between shareholders and does not involve EABL as a party,” the brewer said.

Asahi secured takeover exemptions from capital-markets regulators in Kenya, Tanzania and Uganda in May, removing a key regulatory hurdle. The transaction, however, has yet to close as legal challenges in Kenya continue.

Founded in 1922 and headquartered in Nairobi, EABL, East Africa’s leading branded alcohol beverage business operates across Kenya, Uganda and Tanzania with collections of brand spanning beer, spirits, and non-alcoholic beverages. Its portfolio includes Tusker, Guinness, Bell Lager, Serengeti, Johnnie Walker, Captain Morgan and Smirnoff, with its products sold in more than 10 countries.