2024
INTEGRATED REPORT & FINANCIAL STATEMENTS
OUR BRANDS
OUR PURPOSE
Celebrating life, every day, everywhere.
OUR AMBITION
To create the best performing, most trusted and respected consumer products company in Africa.
OUR VALUES
Our values underpin our business and guide how we work.
- Passionate about consumers and customers
- Value each other
- Be better
- Proud of what we do
OUR CULTURE
Our culture code articulates the behaviours we drive and model, as we energise the organisation towards achieving our strategic goals.
EABL'S CULTURE CODE IS:
BOLD
Daring, risk-taking and experimenting, empowered teams and radical liberation.
PROGRESSIVE
Pioneering, innovating, shaping new frontiers, digital transformation, sustainability, social change.
CONNECTED
Oneness, shared goals, common purpose, pulling together, trust, creating a "fun" workplace that brings out our purpose of "celebrating life everyday everywhere".
TABLE OF CONTENTS
OUR INTEGRATED STORY | 1 |
About This Report: A Toast to Transparency | 1 |
EABL ESSENCE | 2 |
EABL Overview | 4 |
Our Geographic footprint | 4 |
Our Journey and Significant milestones | 5 |
Our Brands | 6 |
Our Purpose | 7 |
Our Ambition | 7 |
Our Values | 7 |
Our Culture | 7 |
Value Creation Model: From Grain to Glass | 8 |
Stakeholder Engagement: Collaborative Spirit | 14 |
LEADERSHIP REFLECTIONS | 20 |
2024 in a Glass: Key Performance Indicators | 22 |
Board Chairman's Statement: Distilling Value | 26 |
CEO and Group Managing Director's Review: | |
Brewing Success | 34 |
CFO's Financial Review: Sustainable Growth | 42 |
OUR STRATEGIC BLEND | 52 |
Strategic Review: Crafting Tomorrow's Beverages | 54 |
East African Beverage Market: Trends and | |
Opportunities | 56 |
Brands in Focus | 58 |
Innovations | 70 |
Our Strategic Enablers | 74 |
FILTERING OUT THREATS, | |
TAPPING OPPORTUNITIES | 92 |
Material Matters: What's in Our Mix | 94 |
Risk Management: Filtering Out Threats, Tapping | |
Opportunities | 97 |
GOVERNANCE AND ETHICS | 104 |
Board Composition: A Diverse Blend | 106 |
Senior Management | 116 |
Corporate Governance Statement | 117 |
Running a sustainable business through an effective | |
Internal Audit & Risk function | 131 |
FINANCIAL STATEMENTS AND | 134 |
OTHER INFORMATION | |
Corporate Information | 136 |
Directors' Report | 137 |
Directors' Remuneration Report | 139 |
Statement of Directors' Responsibilities | 143 |
Report of the Independent Auditor | 144 |
Consolidated statement of profit or loss | 148 |
Consolidated statement of comprehensive income | 148 |
Company statement of profit or loss and other | |
comprehensive income | 149 |
Consolidated statement of financial position | 150 |
Company statement of financial position | 151 |
Consolidated statement of changes | |
in equity | 152 |
Company statement of changes in equity | 154 |
Consolidated statement of cash flows | 155 |
Company statement of cash flows | 155 |
Notes | 157 |
Appendix I: Principal shareholders and | |
share distribution | 211 |
SUPPLEMENTARY INFORMATION | 212 |
Notice of Annual General Meeting | 214 |
Notes on The Annual Genral Meeting ('AGM') | 215 |
Proxy Form | 221 |
Electronic Communications Consent Form | 222 |
INTEGRATEDREPORT
2 0 2 4
PHOTOGRAPH
REQUIRED
OUR | EABL | LEADERSHIP | OUR |
INTEGRATED STORY | ESSENCE | REFLECTIONS | STRATEGIC BLEND |
OUR INTEGRATED STORY
ABOUT THIS REPORT: A TOAST TO TRANSPARENCY
OUR REPORTING SCOPE
AND BOUNDARY
The Integrated Report for the fiscal year ended 30 June 2024 provides a comprehensive overview of East African Breweries PLC's (EABL) business model. It encompasses information regarding our company's strategy, governance, material risks, approach to operating responsibly, and financial and non-financial performance. The objective is to deliver a cohesive and inclusive report to both our current and potential investors that reflects how the Company creates value for all its stakeholders.
FRAMEWORK
Our Integrated Report follows the principles outlined in the International Integrated Reporting Framework, ensuring adherence to its fundamental concepts. The Annual Financial Statements have been diligently prepared in accordance with the International Financial Reporting Standards (IFRS). The Group continuously evaluates whether there are additional reporting frameworks or metrics we could use to further enrich our disclosures. The report is part of our commitment to fostering transparency and accountability towards our stakeholders.
MATERIALITY
We apply the principle of materiality in assessing which information is to be included in our Integrated Report. Through a review of our operating environment and engagement with our key stakeholders, we have identified and reported on the issues, risks, and opportunities that we believe could materially affect EABL and its ability to be a sustainable business that consistently delivers value to our key stakeholders.
94 For more on our material matters, refer to page 94.
ASSURANCE
To enhance the integrity of our report, the financial statements were audited by PricewaterhouseCoopers LLP.
Their independent report in relation to the
144 financial statements of the Group is set out
on pages 144 to 147 of this report.
FILTERING OUT THREATS, | GOVERNANCE | FINANCIAL | SUPPLEMENTARY |
TAPPING OPPORTUNITIES | AND ETHICS | STATEMENTS | INFORMATION |
1 |
02
EABL
ESSENCE
4
4
5
6
7
7
7
7
8
EABL Overview
Our Geographic footprint
Our Journey and Significant milestones
Our Brands
Our Purpose
Our Ambition
Our Values
Our Culture
Value Creation Model: From Grain to Glass
14 Stakeholder Engagement: Collaborative Spirit
2
3
EABL ESSENCE
EABL OVERVIEW
East African Breweries PLC (EABL) is the leading branded alcohol beverage business in East Africa. Since the inception of our flagship product, Tusker, over 100 years ago, EABL has grown through constant innovation to offer a wide and outstanding collection of brands that range from beer and spirits to adult non-alcoholic drinks (ANADs), reaffirming our standing as a total adult beverage (TAB) company.
We are proud of our achievements over the last century and especially the impact we have generated among our people. Our expansive value chain is deeply intertwined within the tapestry of our communities, touching farmers, transporters, distributors and retailers, to the people employed directly and indirectly because of our products.
INTEGRATEDREPORT
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OUR GEOGRAPHIC FOOTPRINT
Our extensive network of breweries, distilleries, and distribution facilities spans the six markets within which we operate in East Africa, especially concentrated in the three core markets of Kenya, Uganda, and Tanzania. Despite operating in East Africa, our unique products can be found in more than 10 countries across Africa and beyond. The Group's geographic diversity is an important factor in delivering the highest quality brands to East African consumers and long-term value to investors.
OUR GEOGRAPHIC FOOTPRINT
GROUP NET SALES
KENYA
64%
UGANDA
21%
TANZANIA
15%
OUR | EABL |
INTEGRATED STORY | ESSENCE |
4 |
GROUP CORPORATE STRUCTURE
OTHER PUBLIC | DIAGEO KENYA |
SHAREHOLDERS | LIMITED |
35%
65%
EABL (HOLDING COMPANY)
100% Kenya Breweries Ltd (KBL)
46.3% United Distillers Vintners (UDV) Kenya Limited
100% East African Maltings Ltd (EAML)
98.2% Uganda Breweries Ltd (UBL)
100% International Distillers Uganda (IDU) Limited
100% East African Breweries (Rwanda) Limited
85% SerengetiLimited Breweries
LEADERSHIP | OUR |
REFLECTIONS | STRATEGIC BLEND |
OUR JOURNEY AND SIGNIFICANT MILESTONES
KBL | ||
incorporated | ||
as a private | ||
company and | ||
the first beer | KBL | |
is brewed on | becomes | |
the 14th of | a public | |
December | company | |
1922 | 1934 |
EABL acquires | ||
100% of shares | ||
in International | ||
Distillers Uganda | EABL cross- | |
(IDU) Limited | lists on the | |
Senator | ||
and 46.23% of | Uganda | |
brand is | UDV (Kenya) | Securities |
launched | Limited | Exchange |
KBL acquired | |
Tanganyika | EABL |
Breweries | acquire |
and changed | financial |
its name to | holding of |
East African | Uganda |
Breweries | Breweries |
Limited | Limited |
1935 | 1959 |
EABL completes the | |
largest public issue | |
in Kenya's history | |
offering Kshs 3 | |
Diageo | million shares at a |
acquires | price of Kshs 18 each, |
majority | raising the number of |
control of | shareholders to more |
EABL | than 23,000 |
2004 | 2002 | 2001 | 2000 | 1972 |
• EABL cross-lists on the | EABL issues Kshs 5 | |
Dar-es-Salaam Stock | billion, 5-year fixed | |
exchange and becomes | EABL acquires | rate notes in the debt |
the first company in East | a controlling | capital markets as the |
Africa to reach US$ 1 billion interest (51%) | first tranche of notes | |
in market capitalisation | in Tanzania's | under a Kshs 11 billion |
• EABL Foundation is | Serengeti | medium-term notes |
launched | Breweries | programme |
EABL issues Kshs 6 billion, 5-year fixed rate notes in the debt capital markets as the second tranche of notes under a Kshs 11 billion medium-term notes programme
2005 | 2010 | 2015 | 2017 |
KBL brewery in Kisumu | |||||||
Diageo | EABL issues | is commissioned, | |||||
increases its | Kshs 11 billion | enabling the business | |||||
aggregate | medium- | EABL | to recruit 15,000 new | ||||
equity stake | term note; | acquires an | sorghum farmers, | ||||
in EABL from | the largest | additional | bringing the total | ||||
50.03% to a | public issue | 34% stake | number of sorghum | ||||
maximum of | EABL | in Kenya's | in Serengeti | farmers in East Africa to | |||
65% | Centenary | history | Breweries | 60,000 | |||
2023 | 2022 | 2021 | 2020 | 2018 |
FILTERING OUT THREATS, | GOVERNANCE | FINANCIAL | SUPPLEMENTARY |
TAPPING OPPORTUNITIES | AND ETHICS | STATEMENTS | INFORMATION |
5 |
INTEGRATEDREPORT
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EABL ESSENCE
(CONTINUED)
OUR BRANDS
Our broad portfolio consists of outstanding local jewels and international brands, reaching across categories, occasions, and price points. Our brands are iconic, relevant, and culturally present. They are flagships of everyday meaningful connections, many with rich legacies spanning generations, while others have more recently being launched. We are incredibly proud of the positive
impact they have in bringing people together to celebrate life, every day, everywhere.
For more information about our brands,
58 please see the Brand Portfolio Performance
section on page 58.
OUR | EABL | LEADERSHIP | OUR |
INTEGRATED STORY | ESSENCE | REFLECTIONS | STRATEGIC BLEND |
6 |