Tanga Cement profit rises 56 per cent, Tanzania

Tanga Cement profit rises 56 per cent, Tanzania

Tanzania-based Tanga Cement, part of the Holcim Group, has posted a  56 per cent YoY rise in net profit to TZS15bn (US$9.5m) due to increased exports and stable electricity supplies. Gross profit was also driven by a 14 per cent rise in domestic sales while exports increased 35 per cent YoY. 

Commenting on the results, acting Chairman, Prof Samuel Wangwe said: "With substantially reduced maintenance and electricity costs, gross profit for the period increased by 40 per cent to TZS30.25bn.” In terms of the outlook for exports, he said: "...the firm is well positioned to take full advantage of its production capabilities to exploit the growing markets in Eastern Africa.”

During the same period, the company experienced no major mechanical problems between January and June, whereas last year a kiln was stopped for almost six weeks for major refurbishment. On the other hand, the availability of rail transport declined compared to the first half of 2012, with only 170 wagons being loaded, a drop of 58 per cent to push up the cost of sales to TZS59.78bn from TZS50.67bn a year earlier. (Source: AllAfrica.com)