Kenya: East African Breweries Limited increases its headcount in year of profit decline
Listed brewer, East African Breweries Limited (EABL) raised its headcount by 203 in its financial year ended June 2024 despite experiencing increased costs which trimmed the brewer’s net profit over the period by 12 percent, Business Daily reported on October 7.
The manufacturer’s permanent employees rose to 1,611 from 1,408, according to new disclosures even as the company felt the pinch of rising costs of sales, selling and distribution costs, and finance costs.
“We employ 1,611 full-time employees around East Africa -Kenya, Tanzania and Uganda. The production side of the business includes sites across three countries,” the brewer notes in its sustainability report.
The bulk of EABL employees are employed by Diageo- the alcoholic beverage manufacturer's parent firm but the company also hires contractors to aid in construction projects, logistics, cleaning and catering, and selected sales and merchandising activity.
“Most people who work on our behalf are employed by Diageo although, like most manufacturing companies, we also employ contractors, the numbers of whom vary significantly by region,” EABL added.
The manufacturer estimates the number of contracted staff at over 1,000.
EABL spent Sh9.5 billion on salaries and wages in its financial year ending June 2024, up from Sh9.1 billion previously.
Total employee benefit expenses however tallied to Sh14.1 billion from Sh13.4 billion including deductions by the company to its staff-defined contribution scheme, the National Social Security Fund (NSSF), share-based payments, and Diageo’s employee share ownership which covers EABL’s senior executives.
EABL says it has been pursuing intervention to increase the participation of women in senior leadership positions, noting challenges faced by women in rising to the top steps.
The manufacturer has however made progress towards increasing the number of women in senior management with the number of females in the position at 47 percent against a medium-term target of 50 percent.
“Given the challenges women face in accessing C-suite and board positions, as well as barriers to entry in STEM fields, we have the opportunity to influence these areas by enabling opportunities for women across the business, at all levels,” EABL states.
EABL profit for the year ended June 2024 eased to Sh10.8 billion from Sh12.3 billion previously, weighed down by higher costs.
The manufacturer however continued to see its turnover rise with revenue from contracts with customers hitting Sh124.1 billion from Sh109.6 billion previously.
The improved sales were anchored by growth in Kenya which represents three quarters of its business with the market paying dividends under its premium and value products which served to offset discretionary spending in other markets.
EABL’s cost base was meanwhile largely impacted by exchange rate volatility in Kenya and Tanzania, rising interest rates and supply input inflation largely driven by supply chain disruptions.
07 October, 2024
