The Largest brewery in Rwanda, Bralirwa Plc has recorded a profit of Rwf2.1bn 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.
The Brewer and soft beverage company, however, cited persistent challenges including increased input costs which held back the firm in the first half of the year.
According to the Managing Director of Bralirwa, Victor Madiela, the local market is increasingly competitive from companies like Skol Brewery which has a range of beers and drinks that have further drove the firm to seek an edge.
“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 added.
Also, 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 disclosed 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, which led to the introduction of a strict cost management drive, in the recent months.
Among the investments by the firm in 2018 include a wastewater treatment plant in Gisenyi at the factory which opened in June.
The firm revealed that to register growth in the first half of 2018, they rode on an 11.5 per cent increase in total volume as well as favourable mix effects.