NAIROBI — East African Breweries expects sales to recover from a coronavirus-induced slump in its second half to June, its outgoing chief executive said, as nations in the region relax measures to curb the spread of the virus.
The brewer, which is controlled by Britain’s Diageo Plc , posted on Thursday a 3% drop in net sales for its first half to end December as sales were pummeled by the closure of bars. Post-tax profit plunged by a third.
Net sales will start to grow again, Andrew Cowan, EABL’s outgoing chief executive, told a virtual investor briefing on Friday.
“We do believe the restrictions we have in East Africa are time-bound,” he said, adding that the expected arrival of COVID-19 vaccines and fairly low cases of new infections in Kenya will also aid a rebound.
The company, which dominates the regional alcohol market with Tusker beer and Johnny Walker Scotch whiskey among other brands, turned to electronic commerce last year to prop up sales.
It set up an online distribution platform where consumers could order drinks, and partnered with delivery firms like Glovo to deliver them straight to their homes.
The share of that distribution channel has grown 10 times from pre-pandemic levels, Cowan said, without sharing actual numbers.
