Higher debt costs hit Rwanda’s brewer profits

The brewer has for several years been engaged in a major expansion and modernisation programme partly financed by debt. PHOTO: COURTESY

Rwanda’s largest brewer, Bralirwa, said pre-tax profit plunged 82 per cent in the first half to 929 million francs ($1.25 million), hurt by an increase in the cost of financing foreign debt because of a weaker Rwandan franc.

The firm, controlled by Heineken, said its net financing costs surged by 343 per cent to 4.89 billion francs during the six months ended June 30, wiping out the impact of 6.2 per cent growth in net revenue.