Tanga Cement sees 1H sales slip 1%, net loss widens

Tanga Cement sees 1H sales slip 1%, net loss widens
30 October 2019

Tanzania-based Tanga Cement saw its first-half sales edge down by one per cent YoY to TZS97.63bn (US$42.4m) in 2019 from TZS98.88bn in the1H18, according to the company’s unaudited results for the six months ended 30 June 2019.

Gross profit fell to TZS24.98bn in the 1H19 from TZS25.56bn in the year-ago semester while operating profit declined to TZS1.17bn from TZS6.77bn over the same period.

Net loss widened from TZS1.79bn in the first six months of 2018 to TZS10.23bn between January-June 2019.

“Robust infrastructure investment and a strengthening consumer base remain major drivers of the business performance witnessed in the first six months supported by lower inflation levels,” said the company. However, the company attributes the decline in sales to competition pressures.

Looking ahead, the company remains positive, with Chairman of the Board, Lawrence Masha, saying: “With Tanzania remaining a significant player in the East African construction market, cement output is anticipated to increase and Tanga Cement is well positioned to take advantage of the growth opportunities in the regional market.”

Published under Cement News