East African Breweries Ltd
EABL · NSE · Manufacturing & Allied
KSh 287.25
+0.44%
AI Score
Augur AI Analysis · FY2026
Last updated 1 October 2026
00
Summary
3.5 / 5
3 of 4 dimensions score above 3.5
EABL's earnings recovery is now accompanied by lower debt and stronger cash generation.
FY2026 net revenue rose 13.3%, parent profit reached KES 15.02bn and debt fell to KES 35.98bn. Leverage remains meaningful, and the reported regional footprint alone does not prove durable pricing power. This local report-based review covers four operating axes; valuation is unassessed because the stored quote is dated 24 July 2026.
- Fin. Health
- 3.7
- 3.8 med
- Growth
- 3.6
- 3.0 med
- Profitability
- 3.8
- 3.6 med
- Bus. Quality
- 3.0
- 3.5 med
Key figures · FY2026
- Revenue
- KSh 146.0B
- Net income
- KSh 15.0B
- Diluted EPS
- KSh 18.99
- Free cash flow
- KSh 21.5B
01
Financial Health
3.7 / 5
EABL has more room to fund its business than a year earlier. FY2026 debt of KES 35.98bn was partly offset by KES 17.99bn cash, leaving KES 18.00bn net debt. Operating cash of KES 28.06bn covered KES 6.57bn cash investment and KES 7.51bn dividends. Debt remains material, but its reduction alongside cash generation supports the stronger assessment. The 1.19 current ratio is supporting evidence, not the main conclusion.
Key evidence
- Debt / equity
- 1.0×
- Current ratio
- 1.2×
- Total debtFY2026
- KSh 36.0B
- Total equityFY2026
- KSh 34.4B
What supports the score
- FY2026 debt declined from KES 42.29bn to KES 35.98bn; cash rose to KES 17.99bn. FY2026 report, PDF page 62.
- Operating cash of KES 28.06bn less KES 6.57bn cash capex produced KES 21.50bn free cash flow. PDF page 64.
- Debt/parent equity fell from 1.56 to 1.05; the current ratio increased from 1.11 to 1.19. Validated annual ratios.
View source data
| Metric | FY2026 | FY2025 | FY2024 |
|---|---|---|---|
| Total Debt | KSh 35,985 | KSh 42,290 | KSh 50,568 |
| Total Equity | KSh 34,398 | KSh 27,095 | KSh 23,767 |
| Current Ratio | 1.2× | 1.1× | 1.2× |
| Debt / Equity | 1.0× | 1.6× | 2.1× |
Money figures in KES millions; per-share and ratio rows in their own units.
02
Growth
3.6 / 5
Growth accelerated after a slower FY2025. Net revenue increased 13.3% to KES 145.96bn, versus 3.8% in the preceding year, while FY2023-FY2026 revenue CAGR was 10.0%. Operating profit grew 27.4% and parent profit 58.6%, so the earnings improvement was larger than the sales increase. The score follows the existing revenue-growth anchor, not the much faster profit rebound; that rebound is not a defensible forecast of recurring earnings growth.
Key evidence
- Revenue growthyear over year
- +13.3%
- Net income growthyear over year
- +58.6%
- RevenueFY2026
- KSh 146.0B
- Diluted EPSFY2026
- KSh 18.99
What supports the score
- Net revenue was KES 145.96bn in FY2026 and KES 128.79bn in FY2025, excluding indirect taxes. PDF page 60.
- FY2023 revenue of KES 109.65bn implies 10.0% annual growth over three years. Retained validated annual series.
- Operating profit rose from KES 25.17bn to KES 32.07bn; parent profit rose from KES 9.47bn to KES 15.02bn.
View source data
| Metric | FY2026 | FY2025 | FY2024 |
|---|---|---|---|
| Revenue | KSh 145,958 | KSh 128,791 | KSh 124,131 |
| Revenue YoY | 13.3% | 3.8% | — |
| Net Income | KSh 15,017 | KSh 9,466 | KSh 8,146 |
| Net Income YoY | 58.6% | 16.2% | — |
Money figures in KES millions; per-share and ratio rows in their own units.
03
Profitability
3.8 / 5
FY2026 operating margin recovered to 22.0% from 19.5%, close to FY2023's 22.1%; this is a recovery, not an unprecedented margin level. Gross margin improved modestly to 42.6%, while parent net margin reached 10.3%. The 43.7% closing-equity ROE should be read beside 11.2% ROA because leverage amplifies shareholder returns. Group free cash flow exceeded group after-tax profit this year; that supports cash conversion without implying the relationship will persist.
Key evidence
- Operating margin
- 22.0%
- Net margin
- 10.3%
- Return on equity
- 43.7%
- Return on assets
- 11.2%
- Free cash flowFY2026
- KSh 21.5B
What supports the score
- FY2026 gross, operating and parent net margins were 42.6%, 22.0% and 10.3%, respectively. Validated annual ratios.
- ROE was 43.7% and ROA 11.2%, using parent profit and closing balances rather than average capital.
- Free cash flow of KES 21.50bn exceeded group after-tax profit of KES 18.23bn; parent profit was KES 15.02bn.
View source data
| Metric | FY2026 | FY2025 | FY2024 |
|---|---|---|---|
| Gross Margin | 42.6% | 42.0% | 43.2% |
| Operating Margin | 22.0% | 19.5% | 20.1% |
| Net Margin | 10.3% | 7.3% | 6.6% |
| ROE | 43.7% | 34.9% | 34.3% |
| ROA | 11.2% | 7.2% | 6.6% |
04
Valuation
Not assessed
no score recorded
The operating improvement does not by itself establish that the shares are inexpensive. The latest stored quote is dated 24 July 2026, while this review was prepared on 1 October 2026. I have not refreshed prices or constructed a current market capitalisation, enterprise value or target price. Valuation therefore remains unassessed and is excluded from the displayed composite. The four scored operating axes are not a complete investment recommendation.
What supports the score
- The retained market-price record is dated 24 July 2026, not the 1 October 2026 review date.
- FY2026 parent profit of KES 15.02bn is verified, but earnings alone do not establish a current valuation multiple.
- No price, share-count or market-capitalisation field was changed by this local review; no current valuation score is assigned.
05
Business Quality
3.0 / 5
EABL's FY2026 segment note describes a regional drinks business spanning Kenya, Uganda and Tanzania and reports no individually significant customer dependence. That spreads demand across customers and markets, but Kenya still generated 61.5% of external sales. The footprint supports an adequate durability assessment, not a claim of an unassailable franchise. These are company disclosures; the reviewed evidence does not independently establish market-share gains, switching costs or sustained pricing power.
How this axis is scored
What supports the score
- FY2026 external sales were KES 89.74bn in Kenya, KES 30.17bn in Uganda and KES 26.05bn in Tanzania. PDF page 75.
- Kenya represented 61.5% of FY2026 external sales, calculated from the disclosed geographic segment totals. PDF page 75.
- The FY2026 segment note reports no individually significant customer reliance; this is issuer disclosure, not independent competitive verification. PDF page 75.
06
Risks
leverage
KES 18.00bn net debt still exposes shareholder returns to financing and cash-generation pressure.
structural
Kenya contributes 61.5% of external sales, concentrating exposure despite the regional footprint.
margin
The recovered 22.0% operating margin is near FY2023's level, not evidence of a new ceiling.
07
Catalysts
balance sheet
Further debt reduction would extend the balance-sheet improvement already visible in FY2026.
cash flow
Sustaining cash generation above investment and distributions would preserve funding flexibility.
structural
Maintaining demand across the disclosed three-country footprint would reduce reliance on Kenya alone.
08
Sources
Every figure in this report is drawn from East African Breweries Ltd's reported annual financial statements as ingested by Augur, from the ratio snapshots derived from them, and — for Business Quality — from dated news sources cited in that chapter. Each chapter's own “View source data” table shows the periods behind it.
Method and limitations
This analysis is generated by an AI system, not by a human analyst. Financial Health, Growth, Profitability and Valuation are scored only from reported historical financial data — company filings and the figures derived from them. Business Quality is the exception: it is informed by a news-based evidence layer of dated, cited reporting from established news organisations, and is left at a neutral score when too few sources cover the company to support a judgement. Nothing here is a forecast: there are no price targets or earnings projections. Figures are drawn from reported filings and may contain errors, omissions or misinterpretations. Augur's operators may hold positions in covered securities; the analysis is produced by an automated methodology and is not influenced by any such holdings. This is not investment advice.