Bralirwa Plc, announces 2013 Annual results

Kigali, 28th April 2014

Bralirwa Plc, announces Annual results for the period to 31st December, 2013.


Top-Line: Revenue grew by 2.0% in 2013 resulting from favourable brand mix and strong revenue management. During the year price increases were limited to Mutzig, Amstel and Guinness brands.

Volume: Volume declined by 0.6% due to reduced beer volume of 1.2%. Soft drinks after a strong first half of the year slowed sharply in the second half to register a small annual increase of 0.9%.

Challenging conditions in export markets impacted beer whose export volume declined by 29%.

The Primus 50cl pack size at a consumer price of Rwf 500 was successfully launched during the year. This has led to a rejuvenation of the Primus brand which has driven market share growth.

Production and sale of Guinness Foreign Extra Stout ceased on 17 November, 2013 due to termination of the franchise license

Cost of Sales (CoS): CoS increased by 9.9% from a combination of factors including increased raw and packaging materials costs, energy costs, currency depreciation and an increase in depreciation charges following the investment programme commenced in 2012.

The spare parts and net book value of the old Soft Drink Plant were fully written-off during the year 2013.

Earnings Before Interest and Taxation (EBIT): EBIT declined by 12.9% due to volume decline, limited price increase and increasing cost of sales during the year.

Net Finance Costs: Net finance costs increased by 5.8% due to increase borrowings to finance on-going capacity modernization and expansion which started in 2012.

Share of Loss of Joint Venture: Bralirwa’s share of Bramin Ltd operating loss in 2013.

2013 saw significant investment on the farm as irrigation equipment, infrastructure and machinery was acquired and installed. Farming operations commenced in the second half of the year. The increased equity investment in Bramin Ltd was fully impaired as the company was yet to commence full operations.

Income Tax Expenses: Income tax expenses increased by 0.5% despite the decline of Profit Before tax due to increase in deferred tax liability. Total taxes paid to the government of Rwanda increased by 2.64% from Rwf 60.8 billion in 2012 to Rwf 62.4 in 2013.

Profit and total comprehensive income for the year (Profit After Tax): Profit After Tax for the year declined by 18.8% due to low sales volume, limited price increases and cost of sales which were adversely affected by increased materials’ prices and the impact of adverse foreign exchange rates in 2013.

Net Debts: Total bank loans and facilities increased from Rwf 3.0 billion in 2012 to Rwf 14.4 billion These were applied to finance Bralirwa Plc capital expenditure programmes.

Key figures
(in thousand HL or Rwf million unless stated otherwise)
2013  2012



Sales Volume 1,650 1,660 (0.60)%
Gross Revenue 117,215 114,934 2.0%
Revenue 78,503 76,987 2.0%
Results from Operating Activities 21,994 25,266 (12.9)%
Net finance cost (374) (353) 5.8%
Share of loss of the joint venture (300) (51) 487.1%
Profit Before Income Tax 21,320 24,861 (14.2)%
Income tax expenses (5,862) (5,834) 0.5%
Profit and Total Comprehensive Income for the Year 15,459 19,027 (18.8)%
Earning per share (EPS) 30.06 37.00 (18.8)%
Dividend per Share 15.00 20.00 (25.0)%
Net Debt 14,416 3,000 380.5%
Free Operating Cash Flow (8,301) 9,350 (188.8)%


(Please refer to the Glossary for definitions in the appendix)

Jonathan Hall, Vice Chairman of the Board of Directors Bralirwa Plc and Managing Director commented:

2013 market context

The business context in 2013 proved challenging as the economies of the East African region were impacted by a combination of factors.

Rwanda’s GDP growth remained in strong positive territory but slowed compared to previous years. This was due amongst other factors to lower levels of donor funding leading to reduced Government spending, limited availability of bank credit and six year low coffee and tea prices paid to farmers due to global supply imbalances.

According to the NISR (National Institute of Statistics Rwanda) GDP growth for 2013 was 4.6%. This slowing economic context impacted consumers spending power and therefore growth in the beverage market.


For Bralirwa Plc, 2013 was a second year of investment and organizational transition in response to changes in the market.

Despite the challenging market context, Bralirwa Plc

  • continued to invest to expand and upgrade production
  • invested and innovated to build strong brands
  • continued to invest to evolve and develop its people and organization to ensure that the Company continues to lead and to win in Rwanda’s competitive beverage market.

Despite depreciation of the Rwanda Franc exerting upward pressure on costs, price increases to consumers were restricted to the smaller premium beer brands Mutzig, Amstel and Guinness. There was no price increase taken on mainstream beers or soft drinks.

Against this background the results showed,

  • 2% top line revenue growth achieved against a decline in sales volume of 0.6%.
  • cost of sales increased by 9.9% due to increased raw material and packaging costs, currency depreciation, energy costs and higher depreciation charges.
  • earnings before interest and tax were lower by 12.9% as higher costs were absorbed in the business to maintain affordability in the market.


Export volumes declined by 29% largely due to increased duties raised by the DRC, Bralirwa Plc’s largest export market.

2013 Capital investment

2013 was the second consecutive year in which Bralirwa Plc invested to upgrade and expand beer and soft drink capacity and to accelerate local sourcing of maize,

  • At the Brewery in Gisenyi, four new fermentation tanks were commissioned.
  • At the Soft Drink plant in Kigali, a state of the art automated line and supporting facilities were installed.
  • At the Bramin farm, 260 hectares of scrub land was cleared and brought into agricultural production through the installation of five centre pivot irrigation systems.

Total capital investment for the year amounted to Rwf 19.4 billion, bringing the total for 2012 and 2013 to Rwf42.25 billion.

The impact of these investments are evident in the 2013 accounts:

  • fixed assets increased by Rwf 19.4 billion
  • Depreciation charge increased by Rwf 785 million.
  • Net debt increased to Rwf 14.4 billion.

As stated in 2012, the investment programme is funded from a combination of internally generated cash flow and increased borrowing.

Brand Building

Bralirwa Plc continues to invest in building strong brands. The third season of Primus Guma Guma Super Star once again had massive impact. This national musical event has in just three years become the showcase for Rwandan musical talent to develop. It also provides a great occasion for fans to celebrate their music idols. Up to twenty five thousand fans attend each of the ten regional PGSS events and an estimated forty thousand packed the Amahoro Stadium in Kigali for the final in August 2013.

The Primus national football league and Copa Coca Cola underline Bralirwa Plc’s support to the development of football in Rwanda.

In mid-year the new Primus 50 cl was launched at Rwf 500 which drove strong volume development and market share recovery.

Organizational Development

To place ever greater focus on the market, customer and consumer, the single commercial department was divided into two thereby creating distinct Marketing and Sales departments. These two departments were then relocated together into a new, modern office space close to the Limonaderie in Kicukiro, Kigali.

A new organization was introduced into the Soft Drinks plant in anticipation of the commissioning of the new state of the art production facilities and the opportunities that this would create for added efficiencies.

Local Sourcing

The Bramin farm in Ndego, Kayonza District came into production in the final quarter 2013. The farm produces maize for Bralirwa Plc’s Gisenyi brewery as well as producing hybrid maize seed for Rwanda’s farmers.

Dividend 2013

The payment of a cash dividend for 2013 of Rwf 15.00 (fifteen Rwandan francs) per share of Rwf 1 (one Rwandan franc nominal value) will be proposed to the annual general meeting of shareholders.

The proposed dividend, if approved, will be paid on 24 June, 2014. The dividend per share in 2013 amounting to Rwf 15.00 represents a decrease in dividend over 2012 of 25%.

Please take note that the payment will be subject to a withholding tax. The book close date for Bralirwa Plc shares will be 21 May, 2014, meaning that the final dividend will be paid to all shareholders, whose names appear in the Register of Shareholders at the close of business on 23 May, 2014.

Share Capital Increase

Bralirwa will propose to shareholders during the annual general meeting of shareholders to consider the recommendation of the Directors to increase the share capital from Rwf 514.285.000 to Rwf 5.142.850.000.

The Annual General Meeting will be asked to decide by special resolution,

  • To increase Bralirwa Plc’s share capital to Rwf 5.142.850.000 of 1,028,570,000 shares of Rwf 5.00 per share through incorporation of Rwf 4,628,565,000 from retained earnings (reserves) by increasing the par value of Bralirwa Plc shares from Rwf 1.00 per share to Rwf 5.00 per share.
  • To issue one new share for every one share held as at 23 May, 2014, all the shares ranking pari passu thereafter. The new shares will not qualify for dividends paid in respect of 2013.
  • To amend the articles of association adopted on 9 June, 2010 completed by the special meeting of shareholders of 11 November, 2010 accordingly.

Outlook 2014

Early indications are that 2014 should see an improvement in the economic context. Uncertainties remain within the global economy not least around the US $ tapering which as it occurs will impact exchange rates and thereby costs.

Exports to DRC will continue to face challenges due to duties charged at the border. New export markets in EAC will be explored.

2014 will see further upgrading investment by Bralirwa Plc in anticipation of continued growth in Rwanda and the EAC Region’s beverage markets, together with further people and organizational development and portfolio investment and innovation.

Bralirwa Plc.

Bralirwa Plc is a Rwandan company producing and selling beers and soft drinks. The Company’s beer brand portfolio includes Primus, Mützig, Amstel and Turbo King produced in the Gisenyi brewery and Heineken which is imported from Holland. Primus, the Company’s largest selling beer brand has been available to consumers since 1959. Since 1974, the Company has been producing and selling soft drink brands under a licensing agreement with The Coca-Cola Company. These include Coca Cola, Fanta Orange, Fanta Citron, Fanta Fiesta, Sprite, Krest Tonic and the Company’s own brand Vital’ O.

The Company was founded in 1957 with the construction of a brewery located in Gisenyi. Since 1971, Bralirwa Plc is a subsidiary of the Heineken Group, which holds 75% of the shares of BRALIRWA with the remaining 25% listed on the Rwanda Stock Exchange.
As a socially responsible company Bralirwa Plc supports a variety of projects from Education to Health and Environment.



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