East African Breweries Limited (EABL) found its share price facing a considerable decline of 3.8%, touching a precarious 52-week low this week, as an array of investors opted to withdraw from their positions within the company.
Citing financial reports, this slide in the share price is attributed to EABL’s fiscal performance in the year concluding in June, which, in turn, triggered discussions surrounding diminished investor profits and a curtailed dividend payout.
On Wednesday, August 16, EABL’s stock concluded trading at Sh129.75, witnessing a transaction volume of 1.95 million shares with a cumulative value of Sh253.7 million. Contextually, the share price had stood at Sh135 on the preceding Tuesday, witnessing a trade volume of 10,400 shares, as per sector data.
This recent downturn in the share price is intrinsically linked to the abrupt fall from its peak of Sh164.5 on July 27, prior to the announcement of the company’s results.
EABL’s board of directors has reportedly proposed a final dividend of Sh1.75 per share. However, juxtaposed against the backdrop of the previous fiscal year ending in June 2022, wherein EABL disbursed an interim dividend of Sh3.75 per share alongside an additional benefit of Sh7.25 per share, the current dividend recommendation signifies a total of Sh11 per ordinary share.
