Bralirwa Ltd, the country’s biggest soft drinks and beer maker, has registered higher profits in the first half of this year largely driven by increased cost controls and an improved supply chain of its products.

In the first half of this year, the company’s net profit grew by 45.3 per cent to Rwf7.9 billion compared with Rwf5.4 billion registered during the same period last year.

“Increased investment in our brands and strong commercial partners have enabled us to sustain our position in the beverage market despite competition from local and regional competitors,” said Jonathan Hall, vice chairman of the board of directors Bralirwa Ltd while releasing the results.

Mr Hall said the company’s increased marketing investments and their supply chain running efficiently has enabled it to deliver a robust performance.

In June this year, Bralirwa paid dividends of Rwf16.90 per share. This represents a 20.4 per cent increase per share in comparison to Rwf20.09 paid out in 2010.

READ: Bralirwa set to pay out higher dividends

Bralirwa’s stock — the country’s first IPO — has continued to generate strong interest since its listing in January 2011. Its share price has surged from Rwf136 — the initial listing price — to Rwf370 as of Wednesday last week.

Analysts say though Bralirwa’s 100 per cent net income dividend payout is company policy; it is a strong incentive to investors as it gives a positive signal about the company’s future.

Bralirwa, which is 75 per cent owned by Dutch brewing giant Heineken International, recorded a net profit growth of 42 per cent on account of higher pricing, higher volumes and aggressive marketing.

Net profit
It recorded a net profit of Rwf14.7 billion in 2011 after recording a volume growth of 16.3 per cent mainly driven by its beer brands — Primus, Mutzig, Turbo King and Heineken beer brands.

Mr Hall said the company expects to experience further growth in the beverage market this year.

“Despite the continued global uncertainty the Rwanda beverage market is expected to remain broadly positive and supportive,” Mr Hall said.

Bralirwa also plans to replace its current soft drinks line this year. This market is mainly dominated by Coca Cola products which Bralirwa manufactures under license.

Earlier on this year, the brewer increased its prices for soft drinks citing increased transportation and raw materials costs, the first increment since 2008.

The retail price of its soft drinks was increased to Rwf300 from Rwf250 per bottle.

Bralirwa’s planned investment of $41 million is expected to enable it to maintain its current estimated 94 per cent market share, in the face of growing competition in Rwanda’s brewery sector.