Habesha Breweries Posts Record Profits, Enters Capital Market Era
BaseLine Team
19 Jun, 2025
A landmark year for Habesha Breweries unfolded today as shareholders gathered at the Addis Ababa Convention Center for the companyโs Annual General Meeting.
๐ ๐๐๐ฐ ๐๐ก๐๐ฉ๐ญ๐๐ซ ๐ข๐ง ๐ญ๐ก๐ ๐๐๐ฉ๐ข๐ญ๐๐ฅ ๐๐๐ซ๐ค๐๐ญ
Habesha Breweries S.C. has officially been reclassified as a public company under the Ethiopian Capital Market Authority (ECMA), joining the first wave of major industrial firms to operate under Ethiopiaโs new securities framework.
As a result, all share certificates will now be dematerialized and transferred into an electronic format managed by the Central Securities Depository (CSD). Future share sales or transfers will only occur through licensed exchanges or the over-the-counter (OTC) market. In line with this, Habesha has urged its more than 8,000 shareholders to promptly submit updated personal and identification details, a vital step in meeting the ECMAโs record-keeping and compliance obligations.
๐๐จ๐ฅ๐ข๐ ๐
๐ข๐ง๐๐ง๐๐ข๐๐ฅ ๐๐๐ซ๐๐จ๐ซ๐ฆ๐๐ง๐๐ ๐๐๐ฌ๐ฉ๐ข๐ญ๐ ๐๐๐จ๐ง๐จ๐ฆ๐ข๐ ๐๐๐๐๐ฐ๐ข๐ง๐๐ฌ
Despite operating under Ethiopiaโs toughest economic environment in years, Habesha Breweries delivered solid financial results for the 2024 fiscal year.
Revenue jumped by 28.6% from the previous year, to reach 7.76 billion Birr.
But part of that is price-driven, not just volume. Inflation was double-digit, and excise taxes and VAT expanded, pushing up prices. Habesha passed some of that to consumers.
As a result
- Operating profit before tax rose 25% to 1.25 billion Birr.
- Net profit soared 29.3% to 738 million Birr.
Itโs a smart response to the float, but itโs not an engine for future growth. Financing costs doubled. The move to a floating exchange rate blew up the cost of foreign-denominated loans and inputs. That hits both imported equipment, packaging, and raw materials. So for profits to go up despite this means one thing: aggressive cost-cutting.
Habesha cut costs through
- Delaying non-urgent capital spending
- Reducing operational waste
- Rethinking procurement
If inflation continues, and they canโt raise prices further without losing customers, margin pressure returns in 2025.
Market share up by 1% to 11% is subtle, but important.
A 1-point gain in national market share is a big deal in beer, where incumbents rarely give up territory.
The draught segment grew 33%, and Habesha Draught is now the #2 draught brand. It is shifting its center of gravity toward draught and premium formats, where margins are higher and competition is less brutal than bottled beer.
Paid-up capital expanded from 2.7 billion Birr to 3.52 billion Birr.
The company also contributed over 4.23 billion Birr in taxes, cementing its status as one of Ethiopiaโs leading corporate taxpayers.
๐๐ง ๐๐ฉ๐๐ซ๐๐ญ๐ข๐ง๐ ๐๐ง๐ฏ๐ข๐ซ๐จ๐ง๐ฆ๐๐ง๐ญ ๐
๐ฎ๐ฅ๐ฅ ๐จ๐ ๐๐ก๐๐ฅ๐ฅ๐๐ง๐ ๐๐ฌ
These achievements come at the backdrop of fierce headwinds faced by the company. The governmentโs introduction of a floating exchange rate triggered a staggering 123% slash of the Birr against US dollar, which dramatically increased the cost of imported raw materials, packaging, and machinery.
In addition
-Inflationary pressures and new excise taxes (including on sugar) squeezed margins.
-VAT on utilities and tightened credit caps in the banking sector reduced access to liquidity.
-Reconstruction in major cities led to the loss of several retail outlets.
-Security challenges and transport disruptions impacted operations in parts of the country.
Habesha also faced internal challenges:
Talent Acquisition: As competition for skilled labor intensified, recruiting and retaining qualified staff became a pressing concern.
Security Concerns: The security situation in the region around the Debre Birhan brewery posed operational risks.
Capacity Constraints: The water treatment unit, air compressor, and COโ plant were flagged for necessary upgrades to support further production growth.
"While we anticipate continued challenges in the macroeconomic, security, and regulatory landscape, we remain committed to achieving our growth goals." Omo Ohiwerei, CEO of Habesha Breweries.
Despite these pressures, Habeshaโs operational strength allowed it to capture market opportunities. The companyโs draught beer segment expanded by 33%year-on-year, securing its place as the second-largest draught beer brand in Ethiopia and reaching 4,341 outlets nationwide.
Habeshaโs flagship bottled brand maintained its 50% market in Addis Abeba.
Negus malt drink posted 14% growth, holding its lead in the malt category.
Feta, Habeshaโs youngest brand, recorded an exceptional 55% growth.
Kidame beer saw an 11% sales decline.
๐๐ง๐ฏ๐๐ฌ๐ญ๐ฆ๐๐ง๐ญ, ๐๐๐๐ข๐๐ข๐๐ง๐๐ฒ, ๐๐ง๐ ๐๐ฎ๐ฌ๐ญ๐๐ข๐ง๐๐๐ฅ๐ ๐๐ซ๐จ๐ฐ๐ญ๐ก
Management remains cautiously optimistic for 2025, acknowledging that exchange rate volatility, inflation, and regulatory changes will shape the operating climate. Expand production capacityโ87% utilization was achieved in 2024, with plans to upgrade key plants and equipment.
-Strengthen its fleet and warehousing footprint to ensure market reach in underserved regions.
-Leverage digital tools and data-driven market execution to boost rural and urban penetration.
-Continue leadership development and workforce optimization in the face of sector-wide talent wars.
-Maintain compliance with ECMA rules to ensure smooth capital market participation.
"By enhancing our supply chain capabilities and optimizing manufacturing processes, we remain fully compliant with industry regulations and committed to sustainability initiatives." Omo Ohiwerei, CEO of Habesha Breweries.
