MIRA
INFORM REPORT
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Report Date : |
04.10.2008 |
IDENTIFICATION
DETAILS
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Name : |
EAST AFRICAN BREWERIES LTD |
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Formerly Known as : |
KENYA BREWERIES LTD |
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Registered Office : |
P.O Box3016, 00100 Nairobi |
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Country : |
Kenya |
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Financials (as on) : |
30.06.2007 |
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Date of Incorporation : |
5.4.1922 |
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Com. Reg. No.: |
4760 Nairobi, Kenya |
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Legal Form : |
Limited Liability Company, Limited by Shares |
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Line of Business : |
Manufacture and Distribution of Beer, Malt based Drinks etc |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 100,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
COMPANY REPORTED
EAST AFRICAN BREWERIES LTD
Former Names: KENYA BREWERIES LTD
Principal Address
P.o Box3016, 00100 Nairobi, Kenya
Telephone: +254-20-864000/
803421/ 802701
Fax: +254-20-802054
Email: eabl.info@eabl.com
Internet: www.eabl.com
Established
5/4/1922
Registration
No.4760 Nairobi, Kenya
Legal Form
Limited Liability
Company, Limited by shares
Stock Listing
Not Listed
Workforce
2007
1600
Office & Factories
Head offices Corporate Centre, Ruaraka, Off Thika Road,
Nairobi, Kenya
Branches Uganda and Tanzania
Company Profile
Paid in Capital KES. 1,000,000,000
Subscribed Capital KES. 936,022,000
Shareholders
Name Position Amount
Ratio
Mr. Jeremiah G.
Kiereini Chairman
Mr. Gerald K.
Mahinda MD
Dr. Nick Blazquez Director
Dr. William S.
Kalema Director
Mr. Evanson
Mwaniki Director
Ms. Wanjiku Mugane Director
Mr. Andrew S.
Ndegwa Director
Mr. Wilfred Kiboro
Director
Mr. Richard Kemoli
Director
East African
Breweries Limited Holding Co. 100.00%
Total 100.00%
Credit Opinion
Our proposed
credit amount of USD 100,000 is recommendable
Affiliated Companies
Company (1) TANZANIA BREWERIES
LIMITED
Company (2) GUINNESS EAST
AFRICA LIMITED
Company (3) SEYCHELLES
BREWERIES LIMITED
Company (4) TEMBO PROPERTIES
LIMITED
Company (5) INTERNATIONAL
DISTILLERS UGANDA LIMITED
Company (6) CASTLE BREWING
KENYA LIMITED
Company (7) KENYA MALTINGS
LIMITED
Company (8) UGANDA BREWERIES
LIMITED
Company (9) UDV (KENYA)
LIMITED
Management/ Directors
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President/
CEO (1) |
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Name |
Mr.
Jeremiah G. Kiereini |
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Work Experience |
20 years in this line of business |
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Remarks |
Top Decision Maker |
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President/
CEO (2) |
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Name |
Mr. Gerald K. Mahinda |
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Major Experience (Last Position) |
Standard
Chartered Bank Kenya Limited (Director) |
Þ Top decision maker is the person who has the
ultimate authority or power to make important managerial decisions. He/She may or
may not be officially registered as a president or an executive director.
Business Activities
Manufacture and
distribution of beer, malt based drinks etc
Terms of payment
Buying terms 30% in cash, 70% on credit
Selling terms 50% in cash, 50% on credit
Suppliers
Farmers, and various other companies
Customers
Distributors, outlets, etc
Recent Sales
KES. 27,328,764,000 (2007)
Exports
Europe,
Neighboring countries
Export Ratio
20.0%
Import Ratio
60.0%
Domestic Market Share
50.0%
Banking relationship
Main
Banks
COMMERCIAL BANK OF AFRICA LTD, Wabera
Street, Nairobi, Kenya
CITIBANK NA, CITIBANK HOUSE, Upper Hill
Road, Nairobi, Kenya
STANDARD CHARTERED BANK KENYA LTD, Kenyatta Avenue,
Nairobi, Kenya
BARCLAYS BANK OF
KENYA LTD, Loita Street, Nairobi, Kenya
Auditors
KPMG KENYA
Credit Check of Subject,
President & CEO (as of report date)
Payment Morale: In the documents at our
disposal nothing adverse has been shown so far.
CREDIT RATING: Financial situation is Good.
COMMENTS
Maximum credit we recommend is USD 100,000 outstanding at any one time.
CONSOLIDATED BALANCE SHEET
(In 000 KES.)
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AT 30 JUNE 2007 |
2007 |
2006 |
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CAPITAL EMPLOYED
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Share capital |
1,317,957 |
1,317,957 |
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Share premium |
1,959,100 |
1,959,100 |
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Revaluation surplus |
1,500,350 |
1,573,221 |
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Retained earnings |
9,294,786 |
8,967,173 |
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Proposed dividends |
4,388,798 |
2,734,762 |
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Translation reserve |
341,677 |
339,317 |
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Total equity attributable to equity |
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holders of the parent |
18,802,668 |
16,891,530 |
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Minority interest |
2,048,108 |
1,694,040 |
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Total equity |
20,850,776 |
18,585,570 |
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Non-current
liabilities |
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Deferred income tax liabilities |
2,051,597 |
1,830,466 |
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Provision for staff gratuity |
- |
75,234 |
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2,051,597 |
1,905,700 |
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22,902,373 |
20,491,270 |
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REPRESENTED BY |
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Non-current
assets |
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Property, plant and equipment |
10,317,328 |
9,134,222 |
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Intangible asset - software |
944,453 |
- |
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Prepaid operating lease rentals |
32,452 |
32,830 |
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Investment in associate company |
1,030,765 |
1,039,516 |
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Other investments |
10,400 |
10,400 |
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Goodwill |
648,664 |
648,664 |
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Deferred income tax asset |
18,886 |
43,054 |
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13,002,948 |
10,908,686 |
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Current assets |
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Inventories |
5,438,580 |
4,048,068 |
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Receivables and prepayments |
4,427,318 |
2,356,436 |
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Income tax recoverable |
208,988 |
562,333 |
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Term deposits |
6,945,585 |
6,101,583 |
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Cash and bank balances |
1,082,776 |
804,591 |
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18,103,247 |
13,873,011 |
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Current
liabilities |
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Payables and accrued expenses |
7,280,319 |
4,116,858 |
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Current income tax payable |
751,009 |
52,924 |
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Dividends payable |
172,494 |
120,645 |
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8,203,822 |
4,290,427 |
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Net current assets |
9,899,425 |
9,582,584 |
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22,902,373 |
20,491,270 |
CONSOLIDATED INCOME STATEMENTS
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For The Year Ended 30 June 2007 |
2007 |
2006 |
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Net revenue |
27,328,764 |
20,906,885 |
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Cost of sales |
(11,212,736 ) |
(7,895,833 ) |
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Gross profit |
16,116,028 |
13,011,052 |
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Other operating income/(expense) |
205,024 |
391,485 |
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Distribution costs |
(1,582,958 ) |
(1,364,209 ) |
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Administrative expenses |
(5,282,265 ) |
(4,105,638 ) |
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Operating profit |
9,455,829 |
7,932,690 |
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Finance income |
513,893 |
379,389 |
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Finance costs |
- |
(37,499 ) |
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Share of associate’s profit after tax |
734,634 |
762,826 |
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Reorganisation costs |
(68,585 ) |
(460,357 ) |
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Profit before
income tax |
10,635,771 |
8,577,049 |
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Income tax expense |
(3,106,880 ) |
(2,167,007 ) |
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Profit after income tax |
7,528,891 |
6,410,042 |
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Minority interest |
(1,395,676 ) |
(1,017,554 ) |
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Net profit
attributable to the shareholders |
6,133,215 |
5,392,488 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.46.88 |
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UK Pound |
1 |
Rs.82.97 |
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Euro |
1 |
Rs.64.99 |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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This score serves as a reference to
assess SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial condition (40%) Ownership background (20%) Payment
record (10%)
Credit history (10%) Market trend (10%) Operational
size (10%)