Shareholders of beer manufacturer, Bralirwa, are set to laugh all the way to the bank after the director of Rwanda’s largest brewery proposed, Monday, that the company would offer 100 percent of its net earnings for the year 2010 as dividends.
Sven- Erik Piederiet, Bralirwa’s Chief Executive Officer, said that the company’s net profit grew by 62.8 percent to Rwf10.3 billion, driven by robust operating profit growth, lower interest expenditure and lower income tax outlay.
He said that the board of directors recommended that the net profits accrued in the last financial year be proffered as dividends to shareholders.
The decision is still subject to shareholders’ approval during the Annual General Meeting scheduled to take place on June 21, 2010.
“If approved, a final dividend of Rwf7bn corresponding to Rwf14.26 per share will be paid on July 21 2011, as an interim dividend of Rwf3bn corresponding to Rwf5.83 per share paid on November 12 2010,” he said.
The CEO also noted that the final dividend would be paid to all shareholders.
The ex-final dividend date for Bralirwa shares will be June 13, 2011 while the book close date will be June 21, 2011, he said.
This means that the final dividend will be paid to all shareholders whose names appear in the Register of shareholders at the close of business on June 21, 2011.
“Bralirwa was able to deliver this strong performance thanks to a continuous focus on our core values, the excellence of our people, the strengths of our brands, our distributors and our ambition to continue to lead the market,” the CEO explained.
He underscored that Bralirwa is not shaken by the launch of a local competitor, Skol, as well as the emergence of regional brands on the Rwandan market.
“I am particularly pleased that despite the entrance of a local competitor and increased competition from EAC products, the success of our marketplace initiatives enabled us to maintain our market share.”
Bralirwa exports 5 percent of its output to the Eastern Congo, the Tanzanian border and Southern Uganda, which has increased its performance.
“We will continue looking at opportunities in areas near us. I am confident that Bralirwa remains well positioned to capitalise on the attractive growth opportunities...,” he said.