Local brewer, Bralirwa has revealed that they made gross sales of Rwf7,709 billion in 2017, registering a growth of 189.2% from 2016.
According to Bralirwa, after paying the tax of Rwf2.6 billion, the net profit was Rwf5,079 billion which marks an increase of 263.3% compared to the previous year.
This was revealed on Monday when Bralirwa was announcing its financial results for the period ended December 31st 2017.
The brewery’s results from operating activities increased by 21.3% driven by cost saving combined with operational efficiencies.
According to Bralirwa Vice Chairman of the Board and Managing Director, Victor Madiela, the total volume declined 12.4% due to the negative impact of pricing on both soft drinks and beer in what remains a competitive market.
He said that the organic revenue declined 2.8% mainly due to the reduced volume which was partially offset by a favourable mix.
Speaking in a press conference, Madiela said that the overall financial performance improved substantially compared to 2016.
“In 2017, overall financial performance improved substantially compared to 2016, despite the challenging business environment. Revenue management combined with a focus on cost savings as well as operational efficiencies and the benefit of lower finance costs, positively impacted the results. Furthermore, we are committed to returning top-line growth, whilst improving our operating margin and reducing debt,” he said.
He said that in 2017, Bralirwa’s volume and revenue remained under pressure. He explained in 2017, the revenue was 2.8% lower than 2016 due lower volume which declined 12.4%.
“Volume was adversely impacted by price increases in both soft drink and mainstream beer in August 2016 and January 2017 respectively. The market remains very competitive and consumer spending constrained,” he explained.
According to Bralirwa, in 2018, they expect to deliver top line growth.
“Consumer spending power is expected to remain constrained. However we expect to deliver top line growth in 2018, supported by our new products introduced in the market. Whilst cost pressures will continue to be challenging, further focus on cost management and reducing debt should enable margin improvement in 2018,” Madiela added.