BRALIRWA posted a 6.2 per cent growth in net revenue during the first half of 2016, the company’s financial statement released yesterday indicates. The firm’s net revenue rose to about Rwf43 billion between January and June from Rwf40.5 billion during the same period in 2015. Its gross revenue was at Rwf65.6 billion compared to Rwf62.2 billion last year.

The increase was attributed to the growth in sales and volumes, especially for soft drinks. The beverage firm pushed 888,000 hectolitres during the reporting period, a growth of 3.5 per cent from 858,000 hectolitres last year.

However, Rwanda’s main producer and seller of beverages firm suffered a huge decline of 82 per cent in profit before tax.

Jonathan Hall, the managing director and board vice-chairman, attributed drop to higher interest expenses on loans and losses following the revaluation of foreign currency denominated liabilities due to devaluation of the Rwandan Franc.

Hall said beer sales grew by 2.2 per cent, while soft drinks volumes increased by 6.4 per cent during the period under review.

"The growth was largely driven by favourable product mix, innovations and growth in soft drinks volume especially the investment made to upgrade the factory’s line three at the Gisenyi brewery and the a polyethylene terephthalate (PET) line of the Kigali soft drinks,” he said while releasing the financial statement at the firm head offices in Kigali yesterday.

"We continue to invest behind our brands to build consumer loyalty,” Hall noted.

The Rwanda Stock Exchange listed firm traded at Rwf160 yesterday, up from Rwf154 during the previous trading session on Thursday.

Full year outlook

Company officials said uncertainties in the wider economic landscape will continue to impact the business, but are optimistic the beverages maker will register some growth in the remaining half of the year. "Though cost pressure and constrained consumer spending power will continue to be challenging to the bottom line, we will focus on innovation, strengthening of premium beer brands, as well as find ways to reduce costs that require hard currency and improve productivity.”