E-Malt.com News article: Kenya: East African Breweries is among the top 10 best performing businesses in sub-Saharan Africa
East African Breweries (EABL) is among the top 10 best performing businesses in sub-Saharan Africa, according to Exotix Limited, a London-based corporate equity research company, AllAfrica posted on February 2.
Ranking is based on market capitalisation and the firm is placed seventh out of 30 listed companies.
The firm studied more than 200 listed companies in 13 countries.
It further indicates that stock markets in sub-Saharan Africa have out-performed those in South Africa, the Far East and Eastern Europe. This is a result of improved macro and micro-economics and social political landscape in the region in recent years.
The research firm reckons that economic rebound in Kenya over the past three years has seen great improvements in the service and consumer sector. Good corporate governance, transparency and high market share in the individual sectors have been major contributors to the success of companies like EABL.
On EABL, it said that high operating margins, new product development and high sales had ensured excellent returns for investors. EABL has a market capitalisation of Sh96 billion making it the second best listed company at the Nairobi Stock Exchange. Returns to shareholders have gone up ten fold in four years.
In the last financial year, the beer market grew by nine per cent while that of spirits recorded the highest growth of 97 per cent. Profits before tax for 2006 went up 10 per cent to Sh9 billion, up from Sh8.2 billion in 2005.
Continued product development was also cited as another plus for success for EABL in the region.
EABL group managing director Gerald Mahinda said: "World-class standards and continuous innovation remain the key to our continued success. Our award winning products are sold across the region and our shares can be traded in all East African bourses."
02 February, 2007