TPCC profits rise, dividend announced

TPCC profits rise, dividend announced
18 April 2016

Tanzania Portland Cement Company (TPCC) profit increased by three per cent to TZS56.2bn (US$25.72m) in 2015, despite depreciation of the shilling that had a negative impact on fuel, spares and quarry services, according to a report in the Tanzania Daily News.

TPPC, trading on the Dar es Salaam Stock Exchange (DSE) as Twiga cement, said profits rose due to stable domestic cement demand and an increase in production capacity last year which pushed up sales volumes by 22 per cent.

The company estimates future demand growth in the country will rise at seven per cent per annum.

"TPCC is well placed to meet this growing demand after investing in expansion of its capacity, together with rehabilitation of the old clinker line," the statement said.

The impact of shilling depreciation that declined by 23 per cent, according to Twiga cement, was offset through efficient variable cost management and fixed cost reduction.

Twiga announced a dividend of TZS306 (US$0.14) a share, which represents an increase of 14.6 per cent compared to TZS267 (US$0.12) per stock of 2014.

Last year the company targeted production of 1.5Mt up from 1.4Mt produced in 2014. The increased capacity follows last year's commissioning of a new 700,000tpa production line.

Published under Cement News