Genghis Capital - East African Breweries Ltd (EABL) East African Breweries Ltd (NSE: EABL) 1H19 Earnings Note

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Genghis Capital

Gerald Muriuki

EUR 26.86 For Business Accounts Only

East African Breweries Ltd (NSE: EABL) 1H19 Earnings Note

East African Breweries Ltd (NSE: EABL) 1H19 results snapshot
East African Breweries Ltd (NSE: EABL) announced great 1H19 performance with an EPS growth of 25.1% y/y (KES 6.52 ahead of our expected KES 6.00) from a 13.0% y/y growth in revenue. Performance was positive across the key product portfolios, mainly Senator Keg which recovered (+35% y/y) from a setback in 1H18. and in Tanzania (+26% y/y in net sales) and Uganda. Gross margin improved to 46.1% from 44.8% supported by the 16% y/y growth in the higher margin spirits (+16% y/y) and improvement in consumption of premium and mainstream beers (total beer growth +12% y/y).
Half year interim dividend has been increased 25% on the back of strong cash, offering a trailing dividend yield of 4.7%. Books closure for the dividend is slated for 22 February 2019 to be paid 11th April 2019. We expect the good numbers and the higher interim dividend to offer the price strong momentum from current levels of KES 170.

25/01/2019 4 EN

Underlying

East African Breweries Ltd

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KE0000000216 Nairobi Securities Exchange Kenya

Provider

Genghis Capital

Genghis Capital is an innovative and customer focused Investment Bank licensed by the Capital Markets Authority (CMA). Founded in 2008, Genghis is one of the leading investment banks in Kenya. Since its establishment, Genghis has achieved tremendous growth to offer a well-diversified portfolio of financial services that includes:

i. Securities(Equity/Debt) Trading
ii. Research
iii. Wealth Management services
iv. Investment Advisory & Management via the GenCap Unit Trusts
v. Corporate Finance & Transaction Advisory services

The Kenyan Capital Markets continue to develop in size, scope and sophistication. With this is an increasing demand for more specialized and personalized brokerage service and we at Genghis Capital are glad to be able to offer you this service. Our strength lies in ensuring our clients are up to speed with developments at the stock market and the economy. Research and technology remains our competitive and comparative advantage hence Experience, Expertise and Professionalism are some of the qualities you can expect from our team.

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Analysts

Gerald Muriuki

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East African Breweries Ltd (NSE: EABL) 1H19 Earnings Note

Genghis Cross-Asset Weekly Strategy - 8th February 2021

East African Breweries Ltd (NSE: EABL) 1H21 Earnings Note

GENGHIS CAPITAL PLAYBOOK 2021: Navigating the Now Normal

Genghis Cross-Asset Weekly Strategy - 8th February 2021

East African Breweries Ltd (NSE: EABL) 1H21 Earnings Note

KenGen Company Plc (NSE: KEGN) FY20 Earnings Note

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