Leading brewer, Bralirwa Plc has registered a profit of Rwf2.1b in the first half of 2018.
The profits stem from revenues of Rwf45.4b in the first half of 2018 which is a 9.7 per cent improvement compared to Rwf 41.3b from the first half of 2017, it said in a statement.
The firm, however, cited persistent challenges including increased input costs which held back the firm in the first half of the year.
Victor Madiela, the Managing Director of Bralirwa, said that the local market is increasingly competitive further driving the firm to seek an edge.
The firm faces growing competition from Skol Brewery which has a range of beers and drinks.
Imports are also increasingly becoming popular in the local market coupled by refined consumer tastes further driving competition.
“In a challenging operating environment, we delivered top line growth in the first half of the year. Both volume and revenue improved driven by increased investments in our brands and favourable mix. Higher inputs, however, challenged our bottom line despite our ambitious cost management programme. In order to drive further performance, Bralirwa will continue to invest in its assets, brands and people,” Madiela said.
The firm’s revenue was also adversely impacted by a one-off excise tax correction following a tax audit which by the Rwanda Revenue Authority discrepancy which revealed a discrepancy of about Rwf400m for the years 2015 to 2017.
The group’s recurrent operating costs were estimated at Rwf7 billion owing to higher input costs and brand investments.
The firm has in the recent months introduced a strict cost management drive.
Among the investments by the firm in 2018 include a wastewater treatment plant in Gisenyi at the factory which opened in June.
To register growth in the first half of 2018, the firm said that they rode on an 11.5 per cent increase in total volume as well as favourable mix effects.