RWANDA – Bralirwa is set to propose Rwf7.5 dividend payout per share next month. The proposed dividend which is the same as last year’s, follows a drop in the firm’s profits last year.
According to a press statement from Rwanda’s largest brewer and soft beverage company, its net profit declined by 14.3 per cent last year, from Rwf15.5 billion in 2013 to Rwf13.2 billion.
This was in spite of its sales volume and revenue growing by 1.9 and 0.9 per cent respectively during the same period. In fact, sales volume increased from 1.65 million hectoliters and Rwf78.5 billion in 2013 to 1.68 million hectoliters and Rwf79.2 billion respectively during 2014.
The drop was attributed to higher absorption costs, depreciation, increased input and finance costs.
Instabilities in foreign exchange were also blamed for this decline, according to the statement.
The firm’s earnings before interest and taxation declined by 11.6 per cent from Rwf21.99 billion in 2013 to Rwf19.45 billion last year
Despite the firm’s drop in profitability, the management will be hoping the shareholders approve the Rwf7.5 cash dividend per share which would total to about Rwf7.7 billion. This is the same dividend that was paid in 2013, noted the statement.