Higher production costs take toll on TPCC's half-year results

Tanzania Portland Cement Co (TPCC) posted a net profit of TZS22.17bn (US$10.4m), down 18.3 per cent from the TZS27.14bn recorded during the corresponding period last year.

First half revenue climbed to TZS135.74bn as sales increased, but the increased cost of sales and insurance proceeds a took toll on profitability.

TPCC Chairman, Jean-Marc Junon, said: "The operating profit for the period was impacted by increased production costs especially on raw materials and fuel due to depreciation of shilling."

"Twenty per cent decrease in operating profit is mainly due to insurance proceeds of 5bn in 2014," he added.

Looking forward, Mr Junon anticipates that competition on the local cement market will increase further  in the second half of this year, adding that "...nevertheless, TPCC enjoys a good market position."

TPCC has a clinker and cement capacity of 1.15Mta and 1.4Mta, respectively. Scancem International DA of Norway, part of HeidelbergCement, owns 69 per cent of TPCC and the balance is widely held with
a local stock exchange listing. The brand name is Twiga Cement.