Tanga net profit falls, Tanzania
Tanga Cement, part of the Holcim group, saw revenues increased by 8% in the half year period ending 30 June 2010-same as in the previous period. However, its net profit after tax declined to TZS10.2bn (US$6.7m) from TZS12.8bn (US$8.42m) in the previous period, according to financial results by Tanga Cement Company Limited released in Dar es Salaam recently.
Revenues were TZS61bn (US$40.13m), an increase of 8% when compared to the previous TZS56.3bn (US$37.04m).
"Cement imports as well as stiff competition in the market continued to have a negative impact on prices and although sales volumes increased by 16%, revenue increased by only 8%," said Charles Naude, Chairperson of the company.
Costs of sales increased to TZS38.1bn (US$25.06m) from TZS32bn (US$21.05m) mainly due to higher maintenance costs and the use of expensive imported clinker during the maintenance shut down in March and April 2010, Naude said in the signed statement. Late last year, the company commissioned a new mill and packing plant in a US$46m investment. Published under Cement News
