EABL shareholders to receive dividends

By Jackson Okoth

Beer maker East African Breweries Limited (EABL) will pay its shareholders Sh6.4 billion in dividends, a 10 per cent increase from Sh5.8 billion paid last year.

During its Annual General Meeting held this Thursday, shareholders approved a dividend of Sh5.65 a share as recommended by the board of directors.

This payment will be in addition to Sh2.40 interim dividend paid in April this year.

"Our company remains strong despite the difficult trading circumstances the world is facing, board Chairman Jeremiah Kiereini told the AGM.

One of the most heavily capitalised companies at the Nairobi Stock Exchange, EABL also has a presence in Uganda, where it is currently testing its Alvaro malt-based soft drink.EABL made a pre-tax profit of Sh12.3 billion during the financial year ended June 2008, compared to Sh10.6 billion the previous year.

Its stock has been one of the most stable during the bear run, with earnings per share rising to Sh9.55 this year compared to Sh7.76 last year. EABL is expected to leverage on its heavy investment in capacity and regional expansion to counter competition posed by a recent entrant into the business.

Already, a new packaging line and dual purpose vehicles are being installed to increase production at its plants in Kenya and Uganda.

"We are happy with the company’s performance and innovative products such as the new Alvaro," said a shareholder