Rwanda’s leading brewery by market share, Bralirwa, posted a surge in net profit in the first half of this year reporting a 40.1 per cent increase compared to the same period last year.
The Brewery’s net profit increased from Rwf3.8b in the first six months of 2010 to Rwf5.4b this year attributing the strong growth to higher soft drink sales and the growth of Primus and Mutzig brands.
“The brewery’s continues focus on effective sales execution combined with increased marketing investments, further efficiency improvement in the company’s production processes with a stable and high quality enabled the company to report a robust performance,” Bralirwa’s Vice Board Chairman and Managing Director, Sven-Erick Piederiet noted.
The company’s Earnings Before Interest and Taxes (EBIT) increased by 33.5 per cent driven by a strong volume performance and effective cost management partly offset by planned higher marketing investment and increased input cost.
According to the brewery’s half year results, the company’s revenues grew by 26.5 per cent which were mainly driven by increased volume growth of 26.3 per cent.
Bralirwa’s boss also noted that despite the increased efforts from local and regional competitors, Bralirwa has managed to maintain the beer market share out their increased investment in their beer brands.
“The increased marketing investments are helping the company to win with customers. The success of Primus GumaGuma Super Star campaign, the new Mutzig promotion, partnership with the Primus Nation Football League, the support to the youth football through Copa Coca-Cola has helped in strengthening the company’s brands,” he explained.
In the second half of this year, Bralirwa projects a plunge in volume growth in order to be in line with Gross Development Product (GDP) growth.
“This slows down is due to the increasing prices and a very strong second half of 2010. EBIT growth is expected to be in line with the first half year performance.”
The second half, the brewery is set to step up its capital expenditures to be able to absorb the increasing market demand.
In July, the brewery increased prices of some of its beer brands including the 72cl Primus bottle and 65cl Mutzig beer to compensate the increasing costs of production and inflation.