{{East African Breweries (EABL\u2019s) share price continued its trajectory of consistent decline ahead of the expected release of the beer maker\u2019s annual results on Friday.}}<\/p>\n
EABL\u2019 share closed at Sh305, a 13% drop from Sh349, the July 30 price when the firm issued a profit warning.<\/p>\n
A profit warning is a regulatory requirement that is issued when a company expects its earnings to drop by at least 25% of the level reported in the previous reporting period.<\/p>\n
\u201cEABL was amongst the top movers today, with foreign investors providing most of the demand and local investors providing supply (553,000 shares).<\/p>\n
\u2018\u2018The brewer continued to witness a bear run easing 2.9% to Sh305,\u201d said a market report by Standard Investment Bank.<\/p>\n
The EABL stock has been on a gradual decline as investors factored in the impact of the profit warning, which signals a drop in the company\u2019s generous dividends payout over the years.<\/p>\n
\u201cBased on our valuation, the company\u2019s full-year dividend will probably fall to about Sh7.75 per share compared with Sh8.75 a year earlier,\u201d said a market report by Old Mutual Securities.<\/p>\n
EABL said that it was expecting profitability to decrease by at least 25% due to high cost of finance on the loan it took from its parent company, Diageo, to re-purchase its stake from south African brewer SABMiller.<\/p>\n","protected":false},"excerpt":{"rendered":"
{{East African Breweries (EABL\u2019s) share price continued its trajectory of consistent decline ahead of the expected release of the beer maker\u2019s annual results on Friday.}} EABL\u2019 share closed at Sh305, a 13% drop from Sh349, the July 30 price when the firm issued a profit warning. A profit warning is a regulatory requirement that is […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[99],"byline":[170],"hashtag":[],"class_list":["post-9891","post","type-post","status-publish","format-standard","hentry","category-business","tag-greatlakesnews","byline-igihe"],"bylines":[{"id":170,"name":"IGIHE","slug":"igihe","description":"","image":{"id":0,"url":"https:\/\/secure.gravatar.com\/avatar\/?s=96&d=mm&f=y&r=g","alt":"Default avatar","title":"Default avatar","caption":"","mime_type":"image\/jpeg","sizes":[]},"user_id":8}],"contributors":[{"id":170,"name":"IGIHE","slug":"igihe","description":"","image":{"id":0,"url":"https:\/\/secure.gravatar.com\/avatar\/?s=96&d=mm&f=y&r=g","alt":"Default avatar","title":"Default avatar","caption":"","mime_type":"image\/jpeg","sizes":[]},"user_id":8}],"featured_image":null,"_links":{"self":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/posts\/9891","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/comments?post=9891"}],"version-history":[{"count":0,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/posts\/9891\/revisions"}],"wp:attachment":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/media?parent=9891"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/categories?post=9891"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/tags?post=9891"},{"taxonomy":"byline","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/byline?post=9891"},{"taxonomy":"hashtag","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/hashtag?post=9891"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}