E.A Breweries released its 1H19 earnings today morning, posting a 33.4% y-o-y increase in profit to KES 6.6 BN. Interim EPS stands at KES 6.52 Revenue went up 13.0% y-o-y to KES 41.6 BN on account of strong performance from the mainstream spirits, bottled beer and senator Keg while cost of sales rose 7.5% y-o-y to KES 22.4 BN. Gross profit rose 20.1% y-o-y to KES 19.2 BN with gross profit margin recording a 270 bps improvement to 46.1%.Total costs edged up 8.8% y-o-y to KES 9.5 BN. Total assets grew 13.4% y-o-y to KES 80.9 BN primarily due to a 31.9% y-o-y rise in current assets to KES 28.4 BN. Cash and cash equivalents at the end of the period stood at KES 8.8 BN compared to KES 4.6 BN recorded in 1H18. This was partly on account of a 75.3% y-o-y improvement in net cash from operating activities to KES 12.6 BN.

The debt to equity ratio of 465% is too much for future growth.With the total debts of 67 billion,even the recent New plant in kisumu will just be to service loans.
Shareholders have very little at kshs 14 billion.
The NAV per share is terrible at 18.11 against the current price of 190.

NSE is supposed to attach the resusts in its website but sometimes they forget.Right now,EABL half year results are not in their website-www.nse.co.ke

https://www.businessdailyafrica.com/corporate/companies/EABL-takes-Sh11bn-loan-from-Stanbic-StanChart/4003102-4959488-sdrqei/index.html

Beer maker East African Breweries Limited (EABL) has borrowed Sh11.5 billion from Kenyan units of Standard Chartered and Stanbic banks to pay off a similar-sized loan taken from its London-based parent Diageo.

The local loan is intended to save the Nairobi Securities Exchange-listed firm an additional tax burden that applies when a subsidiary takes a loan from its parent company.

12.95% !!! investors wanakula unono. That date though

12.95% is way too high. They can source standard loans at 13% without needing to negotiate / go through the administrative hassle of managing agents and noteholders, etc. Unless they are locking in a fixed rate now in anticipation of potential lending rate hikes.