Beverages producer, Bralirwa, is looking to end its poor performance next year when the company completes the last phase of brewery and soft drinks plants upgrading.
This follows release of the brewer’s financial statement for the first half of the year indicating a 25 per cent drop in net profit to Rwf3.7 billion, down from Rwf4.9 billion in June last year.
According the statement released on Friday, the Rwanda Stock Exchange (RSE)-listed company, however registered a 6.9 per cent growth in revenues, which were driven by growing sales across all its brands.
Beer sales grew four per cent over the reporting period, while soft drinks sales were up 13.4 per cent. Bralirwa counter at the RSE closed at Rwf292 on Friday, shedding Rwf3 from Rwf295 during the previous trading session on Thursday.
The statement indicated that since 2012, when the company started its investment programme, there have been increased bank interest and depreciation charges, which it says have directly negatively impacted the company’s net profits.
The firm’s net interest expenses increased by over Rwf1 billion to Rwf1.1 billion in June from Rwf86 million last June, mainly related to the soft drinks plant investment.
“The plant was commissioned in the last quarter of last year and from then on related interest charges were no longer capitalised but expensed,” the firm said in the media release.
The company’s total assets stood at Rwf106.5 billion at the end of June, up from Rwf102.5 billion at the end of last year. Its total liabilities stood at Rwf63.8 billion compared to Rwf49.3 billion in December.
The company anticipates similar volume growth trends, assuming the current market conditions remain stable, according to the statement. It added that this year’s exchange rate fluctuations have impacted on the firm’s cost of sales with material price increases.