East African Breweries Plc (EABL) reported an 11 percent increase in net revenue to 75.5 billion shillings (86.8 million US dollars) for the first half, while net income rose 38 percent to 11.2 billion shillings, Bloomberg reported.

The Kenya-based Diageo Plc unit attributed part of the earnings growth to a 2.2 billion-shilling reduction in total debt, which lowered finance costs.

The company has recommended an interim dividend of 4 shillings per share, 60 percent higher than the same period last year. According to a statement cited by Bloomberg, easing inflation, declining interest rates, and stabilising regional currencies supported earnings, although household disposable income remained under pressure and elevated input and operating costs continued to affect margins.

Diageo has agreed to sell its 65 percent stake in EABL to Japan’s Asahi Group Holdings Plc. Bloomberg cited a Jan. 27 note from Nairobi-based Faida Investment Bank, which said Asahi’s global expertise, financial strength, and focus on growth markets could help EABL expand market share, improve operational efficiency, and enhance corporate value across East Africa.

“EABL is positioned to accelerate market share, improve operational efficiency, and enhance corporate value across East Africa,” said John Collins Mbugua, an analyst at Faida, which maintains a buy rating on EABL with a target price of 270 shillings.

EABL’s shares closed Thursday at 245.25 shillings, after rising 50 percent last year in step with the Nairobi Securities Exchange’s All-Share index.