12 September 2012

Rwanda: Bralirwa Profits Shoot Up

Kigali — Bralirwa, has registered a robust performance for the first quarter of this year with its net profits up by 45.3% to Rwf 7.9b a rise attributed to strong operating profit growth and lower interest expense.

Mr. Jonathan Hall Managing Director for Bralirwa said focus on sales execution combined with investment in marketing and high quality products helped the country's leading brewer and soft drinks industry register high results.

"Our combined focus on top line growth, increased cost controls and improved supply efficiencies delivered a another great performance in the first half of 2012," he said during the official launch of the first half year results at the Bralirwa head offices.

Hall noted that volumes grew by 3.4 percent to 788,000 hecta liters in the forts quarter of this year compared to 762,000 hecta liters last year in the same period driven by growth in beer and soft drinks.

Whilst, revenues went up to Rwf 36b indicating a percentage rise of 22.3% up compared to Rwf 29b in the same period last year which was supported by a combination of higher volumes increased pricing and improved sales execution against increasing competition.

According to official half year results, the company also registered a vibrant free operating cash flow of over Rwf 4.4b as a result of significant increase in profitability despite increased investments.

"Our increased investment in our brands and strong commercial partners has enabled us to sustain our position in the beverage market despite competition from local and regional competitors," Hall saidIndeed, the company's Earnings before interest and taxes and net finance expenses-EBIT is in the first half 2012 indicates a strong top line management and effective cost management pushed by favorable market environment.

"We will continue to focus on the implementation of our strategic imperatives, sales growth, cost management, strong cash generation to support our planned investments in soft drinks and beer capacity," Hall added

Willy Ngana, the brewer's Financial Director, says that Bralirwa will continue to implement its investment plans mainly in capacity upgrade and expansion to continue to lead the Rwandan beverage market.

"Our people remain at the heart of our business and as in the past we will continue to invest in them to assist them to achieve their potential," he said

Despite continued global uncertainties that impacts directly on the country's economy, experts are optimistic that the Rwanda's beverage industry is expected to keep afloat in the second half of 2012, a likelihood that will see growth in volumes needed to satisfy the current demand market.

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