20 December 2012

Rwanda: Bralirwa Shares Buoyed By Expansion Plan

Bralirwa's stock has maintained its upward trend, riding on growing demand to touch a new high of Rwf620.

The stock has been on a three-month rally attributed to an improved half-year performance and announcement of plans to increase production of the country's largest alcoholic and soft drinks manufacturer.

"On Bralirwa counter, there were outstanding bids of 503,300 shares between Rwf 610 and Rwf 621 and no outstanding offers," said the Rwanda Stock Exchange (RSE) in its weekly report. According to yesterday's RSE report, the closing price of the company was pegged at Rwf 620.

A total of 525,500 Bralirwa shares were traded last week.

Bralirwa's expansion plans are to be financed from internally generated cashflows, a strategy that advised the management's decision to hold back interim dividend payment to shareholders.

The management also stated that it will be seeking a local bank debt to top up its finances.

The company has launched a $41million expansion plan to increase its capacity as it seeks to meet rising consumer demand.

Bralirwa plans to put up a new soft drink line at its Kicukiro plant and upgrade its main brewery located in Gisenyi, in the Western Province. According to the company, the investment will benefit Rwandan companies through civil engineering activities and job creation.

"These investments will be financed from internally generated cashflows as well as some limited local bank debt," said Jonathan Hall, the company's managing director in a letter to the RSE.

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