E-Malt.com News article: Rwanda: Heineken’s Bralirwa says FY profit soared 42%

Rwandan brewer Bralirwa's full-year net profit soared 42 percent on higher pricing, new brands and rising sales of its beer brands and soft drinks, the company said on May, 15.

Bralirwa, which is 75 percent owned by Heineken, expects to benefit from the continuing economic growth in the African region this year, the company said in a statement.

Net profit for 2011 stood at 14.7 billion Rwanda francs ($24 million), and earnings per share climbed to 28.50 francs from 20.09 francs a year earlier, the brewer said.

Sales volumes rose 16.3 percent during the year to December 31, driving up earnings before interest, tax and net finance expenses (EBIT) by 38.9 percent to 23.855 billion francs.

Bralirwa said it would pay a total dividend of 24.20 francs per share, up 20.4 percent compared with 2010.

Jonathan Hall, the company's managing director, said Bralirwa would take advantage of the expanding economy of the central African country to increase its profits.

"The Rwandan economy demonstrates strong fundamentals with sustained growth. Bralirwa expects to experience further growth in the beverage market in 2012," Hall said.

"I remain confident that Bralirwa is well positioned to capitalize on the attractive growth opportunities in Rwanda in the years ahead."

Rwanda has said its economy is expected to grow faster this year compared to last due to reforms in its key agricultural and industrial sectors, which propelled its expansion in 2011.

The country has had a better run on inflation than others in east Africa, including Kenya, Uganda and Tanzania where double digit inflation and weak currencies prompted authorities to increase interest rates to around 20 percent in some cases.

Rwanda's 2011 gross domestic product stood at 8.6 percent compared to 7.2 percent a year earlier, spurred by strong growth in the key farm sector, as well as industry and services.

Bralirwa became the central African nation's first-ever initial public offering in January 2011, marked by a heavy oversubscription that has encouraged Rwanda to speed up the sale of other shares to develop its nascent capital market.

Bralirwa is Rwanda's oldest brewery with rights to produce brands such as Guinness and Amstel. It also produces branded soft drinks such as Coca-Cola.

(1 USD = 608.5446 RWF)


16 May, 2012