East African Breweries : EABL 2023 AGM Livestream Questions.

Name

Agenda

Question

Response

KINYANJUI JOSEPH MUTURI;

FINANCIAL STATEMENTS

How much is the

An interim dividend of Kshs 3.75 per share for

MWANGI GRACE WANJIRU;

dividend

2023 (2022: Kshs 3.75 per share) was paid in April

GICHURU DUNCAN; MWANGI

2023.

JOYCE WAMBUI; KIRAGU JAMES

KARIUKI; NGURE JOB FRANCIS;

At the forthcoming AGM, the Directors

KINUTHIA RYAN GEORGE

recommend that the shareholders approve the

KINYANJUI; NGUYO JOHN

proposal to declare a final dividend of Kshs 1.75

MAINA;MICHIRE NANCY

per share for the financial year ended 30 June

WANGECHI; KAMAU JAMES

2023 (2022: Kshs 7.25 per share).

NGUGI; NJERU CAROLINE

WANJA; NJOGU PHILLIS

Subject to approval, the total dividend pay-out for

WANGARI; OTIENO JOHN

the year will therefore be Kshs 5.5 per share.

KENNEDY; RATEMO MARY

NYABOKE; NJENGO DANIEL

KAMANJA; KARIUKI ALICE

WARINGA; MUMA RICHARD

OGWENO

MBEHERO STANLEY MUGAISI

FINANCIAL STATEMENTS

Why are the loans of

The Company's Net debt increased primarily on

EABL substantially

account of the increased long term borrowings

higher compared to a

taken to fund capex investments. This was mainly

few years ago?

for projects that were already in the pipeline

Although there are tax

including capacity expansion projects in Uganda

benefits on corporate

and Tanzania. We have revised our future capex

tax on finance cost, we

pipeline to help us navigate this.

also know that too

much borrowing is not

good especially at a

time like this when the

economy is struggling.

What are the plans in

place to reverse this

trend?

Name

Agenda

Question

Response

KARUMA JOHN GIBSON;

DIVIDENDS

How can I elect to be

Kindly contact the Company's Share Registrars,

MANINGA PATRICK NDUBI;

receiving my dividends

Image

Registrars

Limited

through

MUHONJA LINAH; KISISWA

via M-Pesa?

+254709170000 OR send an email to

LYNETTE KAGEHA

eabl@image.co.ke for guidance on how to receive

your dividends through mobile money.

MOKAYA ELON ACHIRA;

FINANCIAL STATEMENTS

How can I access the

Kindly note that the financial statements are

NALUNGA HARRIET; MWAURA

financial statements?

available

from

the

below

link

JAMES MAINA; RATEMO MARY

https://www.eabl.com/investors/financial-results

NYABOKE

ENTONAI CAPITAL HOLDINGS

DIVIDENDS

Why have dividends in

The business is guided to ensure that a

LIMITED

the Company been

sustainable dividend payout is made ensuring that

reducing?

we have adequate reserves in line with the key

balance sheet ratios. This will ensure that the

business will continue to navigate volatility in the

operating environment

OSANO FREDRICK OMONDI;

DIVIDENDS

How can the Board

Investors can acquire more shares by purchasing

RWAGI PETER MURIUKI

help shareholders

them from the open market. EABL shares are

increase their shares?

available for trading on the stock exchange, where

you can place orders through your brokerage

account.

WAITHAKA OLIVE MILCAH

FINANCIAL STATEMENTS

What measures are

The business is continually identifying productivity

NYATHIRA

management taking to

initiatives including pricing and cost management

help improve

to mitigate inflation and regulatory changes from

profitability and sales in

excise to drive margin expansion.

the coming year

NYABENA REUBEN

ANY OTHER BUSINESS

Why share price

Share price within the NSE is also driven by

declining despite of

demand and supply and with the flight of foreign

company strength?

investors from the NSE this trend has impacted

the significant counters on the bourse.

MURITHI LINUS LABANSON

ELECTION OF DIRECTORS

What qualifies one to

The Board Nominations and Remuneration

be appointed as a

Committee is charged with the responsibility of

Director?

succession planning and external talent pipelining

for potential vacancies within the Board. This is

done through nomination, selection and vetting

from a pool of suitable candidates to fill vacancies

that may arise from the Board.

Name

Agenda

Question

Response

OUMA KEVIN OYWA

DIVIDENDS

What is the plan to

The business is guided to ensure that a

turnaround the

sustainable dividend payout is made, ensuring

dividend returns and

that we have adequate reserves in line with the

share prices.

key balance sheet ratios. This will ensure that the

business will continue to navigate volatility in the

operating environment. The focus to drive up

profitability despite the challenging macros will

contribute to dividend growth.

MUTURI KARIUKI KIARIE;

DIVIDENDS

When is the AGM?

The EABL hybrid AGM (partly online and partly

WILFRED GICHOVI KARIUKI

physical) will be held on 14 September 2023 at

Safari Park Hotel Nairobi at 11:00 a.m.

BOMET BRIAN SEGO; MWANGI

DIVIDENDS

Why have the directors

While our dividend policy is to give out a payout

PETER KINGORI

proposed a reduced

of 70% of earnings after tax, subject to the shape

dividend payout? What

of our balance sheet, the level of our key ratios

guidance can the board

and the continuing volatility in the operating

give shareholders on

environment we considered it prudent to reduce

the expected payout

the payout in order to navigate this period and

ratio going forward?

deleverage the balance sheet.

KIMANI ELIUD KURIA; NJENGA

DIVIDENDS

Consider giving of a

A gift will be available to shareholders who will

SALOME NJARI; KIMANI ELIUD

gift to compliment

physically attend the AGM.

KURIA; MURUU REGINA

dividend.

WANGUI

KIMANI ELIUD KURIA

FINANCIAL STATEMENTS

What is the impact of

We are pleased by the Government's stance to

the new taxes on the

provide an excise tax break to the alcoholic

Company financials?

beverage sector, whose performance has been

significantly dented by consistent excise tax

increases over the years. Barring macro-

economic effects impacting consumer wallets, we

should recover in volumes.

Name

Agenda

Question

Response

NDUATI DAVID KAHURA

FINANCIAL STATEMENTS

When do we expect

In consideration of the Company's financial

bonus shares?

position and investment plans to fuel growth

across the region and ensure long-term value to

shareholders we consider the dividend pay-out

adequate for now, but consideration of bonus

shares is always open for future discussion. The

Board is of the view that EABL shares are

currently at a price that assures shareholders of

good liquidity and are trading at a discount.