E-Malt.com News article: Tanzania: Tanzania Breweries profit rise 12% in April-September 2007

Tanzania Breweries Ltd (TBL) has posted a noteworthy performance for the past six months ended September this year, The Guardian published November 19.

According to the company’s interim financial results, sales have grown by 24 per cent from 147,545m/- to 183,423m/- for the period under review.

The results, duly signed by managing director C. McDougall says sales growth was supported by organic volume growth and price increases, strategies that were concurrently necessary to absorb the impact caused by higher fuel prices, as well as significant rise in key input commodity price.

Volume growth continued to track the growth in the Tanzania economy in general, further supported by TBL�s on-going efforts to increase distribution footprint to ensure that ultimately its products would be readily available across all corners of the country, it says.

The company’s profit has also increased by 12 per cent from 29,989m/- to 33,634m/- in six months.

Trading profit also grew by 13 per cent from 45,361m/- to 51, 353m/-, and it defied the odds of increasing costs to higher investment in people, maintenance and brand marketing to ensure future sustainability of TBL�s key resources, the statement says.

As expected, earning per share also increased by 12 percent from 97.9/- to 109/-, but the board approved 90/- as dividend per share, which was paid out on 27 September this year.

Good working capital control contributed to cash generation from operating activities growing by 19 per cent.

Total cash generated for the period stood at 57bn/-, of which 14bn/- was utilized to pay corporate tax, while 26bn/- funded capital expenditure and interest rates while the remaining 17bn/- went towards funding the 27bn/- paid as dividends to shareholders.

At the moment the company has embarked on a significant expansion facility upgrade programme to meet optimistic growth expectation.

Up to September this year a total of 25bn/- had been invested in the programme.

The group balance sheet shows the total assets has increased by 12 per cent from 192,592m/- to 214,963m/- realized for the period.

The balance sheet also indicates that the company�s total equity increased by 7 percent from 109,080m/- to 116, 521m/- .

TBL is listed on the Dar es Salaam Stock Exchange (DSE), it employs about 1,100 people.


21 November, 2007