Tanga Cement annual sales reach record high, Tanzania

Tanga Cement annual sales reach record high, Tanzania
11 April 2013

Tanga Cement said its cement sales last year crossed the 1Mt mark – the highest in the Tanzanian cement producer’s history.

Sales at the company, which produces the Simba Cement brand, rose by 21 per cent to TZS257.92bn (US$158.8m) thanks to increased exports which rose by 55 per cent YoY. Pretax profit rose to TZS55.93bn from TZS37.08bn an net profit increased by 52 per cent YoY.

Commenting on the performance, acting chairman Professor Samuel Wangwe said: "The sales volume increase marks a significant milestone for Simba Cement, being the first time the company sold over one million tonnes of cement in one year."

 He said the sales increment and reduction on maintenance costs were partly responsible for the 26 per cent increase in the company's gross profit for the year. "The overhead costs were strictly controlled and the company's operation profit for the year increased by 34 per cent," Prof Wangwe said, adding that improved supply of electricity compared to last year's also contributed to the cement manufacturer's profitability. However, distribution costs increased substantially as the company's reliance on road transport increased. 

The board of directors has approved the construction of a second clinker line at the factory to meet demand and eliminate the need for of imports. The project, scheduled to be completed in 2015, will increase clinker production capability by 600,000tpa, more than double the current capacity.

"This additional capacity is expected to satisfy the consistently high demand for cement from both the local and export markets," Prof Wangwe said.

Published under Cement News