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East African Breweries shares nosedive to a 52-week low
East African Breweries Limited’s (EABL) share price plummeted 3.8% to a perilous 52-week low this week after a swathe of investors fled the company.
The share price drop has, according to financial reports, been linked to EABL’s fiscal performance in the year ended June which in turn led to rumblings about investors receiving a lower profit and a halved dividend.
EABL’s stock closed at Sh129.75 on Wednesday 16 August when it moved 1.95 million shares worth Sh253.7 million. According to the sector, the share price had stood at Sh135 on Tuesday when 10,400 shares were traded.
The recent drop in the share price – from a high on 27n July of Sh164.5 before the results were announced – has been linked to the sudden fall.
EABL’s board of directors have now reportedly recommended a final dividend of Sh1.75 per share, however EABL’s payout to shareholders in the year to June 2022 was an interim of Sh3.75 per share and also included the benefit of Sh7.25 per share for a total of Sh11 per ordinary share.
EABL has since reported a profit drop from Sh15.6 billion a year earlier to Sh12.3 billion and has attributed this to higher costs stemming from sharply-rising indirect taxes, cost of sales and net finance costs.
The increased costs have also served to offset gross sales which are said by the company to have grown marginally to Sh197.6 billion from Sh193.9 billion previously.