Twiga Cement pre-tax profit rises

Twiga Cement pre-tax profit rises
Published: 03 September 2007

The Tanzania Portland Cement Company (TPCC) has posted TZS22.116bn/- pre-tax profit from its operations during the first six months of 2007, it was announced in Dar es Salaam over the weekend.

The profit made represents an increase of 52 per cent compared to the corresponding period last year, TPCC said in a statement.

The company, however, noted that there were several production and marketing challenges during the first six months of 2006, which included erratic water supply and power crisis.

It said that half-year revenue jumped to 57bn/- at the end of June, this year, an increase of 59 per cent, from 35.95bn/- recorded during the first half of last year.

TPCC has shares listed on the Dar es Salaam Stock Exchange (DSE) where it trades as Twiga – the firm’s flagship brand name.

On Friday, Twiga shares closed at 740/- each. The firm’s market capitalization on the bourse is 133.4bn/- being the third largest local company.

However, the Board of Directors of TPCC has not proposed any dividends to shareholders because of the firm’s current commitment to the ongoing over 100 million US dollars (128bn/-) expansion programme that is expected to be concluded in 2009.

Upon completion the firm’s annual output is expected to reach one million tonnes, from the current 700,000 tonnes.

The firm has predicted bright prospects for the industry due to strong cement demand in the country.

The first six months of 2007, saw cement demand grow at the rate of 16 per cent, as sales of the firm’s products grew by 35 per cent during the period.