Gross Turnover: KShs 34.8 Billion +16%
Net Turnover: KShs 19.3 Billion +16%
Profit Before Tax: KShs 8.6 Billion +22%
Profit After Tax: KShs 5.8 Billion +22%
Earnings Per Share: KShs 7.24 +23%
Dividend Per Share: KShs 4.50 +29%
Price Aug 26 2005: KShs 155.00
Management seems determined to expand their range of products BUT they have not indicated regional expansion. EABL {then Kenya Breweries Limited (KBL)} sold off their holdings in Seychelles as part of the restructuring process in the 1990s. In addition, EABL swapped 20% of KBL in exchange for 20% of Tanzania Breweries Ltd (TBL).
Management has decided to expand into non-alcoholic beverages since they:
- Have excess bottling capacity
- Have a well established distribution network
- Own Central Glass Industries who manufature bottles & jars
- Have too much cash which they want to redeploy
- Continue to rationalise costs even further
- Plan to outsource distribution to retail centers
- Continously improve on their plant
- Maintain their brand name & quality
- Introduce new products e.g. Smirnoff Black Ice
Anyway, me thinks that EABL is overpriced.
2 comments:
Cold, pls indulge my ignorance. What do you mean when u say Dividend per Share= 4.50 + 29%. What's the 29% about?
Sorry for my delayed resonse but the dividend was UP by 29% over a similar period last year.
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