Bralirwa has announced new prices for its soft drinks three days after a drop of up to 82% in its profits to Rwf 929million in first half of 2016 from Rwf 5,167 million in 2015.
The Heineken’s subsidiary and largest brewer in the country that has both soft drinks and beer lines says the move is aimed at covering both the increasing cost of inputs as well as changing business environment.
“Due to increase in price of inputs and the changing business in general, we have decided to increase prices for our soft drinks,” said Jonathan Hall, Managing Director of Bralirwa on Monday.
All the soft drinks by Bralirwa have increased by Rwf 50 effective Monday August 22.
According to a statement released by the company, the recommended retail price for bottled soft drinks of 30cl stands at Rwf 350 up from Rwf 300, while 50cl for big bottles will cost Rwf 500.
The prices for plastic bottles-30 cl that were recently introduced into the market will cost Rwf 450 from Rwf 400.
Bralirwa last increased its prices for soft drinks in 2012 where they cited an increase in transport costs, raw material prices as well as business costs.
Commenting on the drop in profits, the brewer on Friday cited volatility in the foreign exchange market with the local currency-Rwanda Franc declining against the dollar as well as high operating costs.
“The significant decline is attributed mainly to higher interest expenses on loans and losses following revaluation of foreign currency denominated liabilities due to devaluation of the Rwanda franc,” Hall told KT Press.
With sale volumes for soft drinks growing by 6.3% in the first half of 2016, the increase in prices according to the company will further help improve its performance outlook in the second half of 2016, although there are worries of cost pressure and constrained consumer spending power.