Wednesday, November 25, 2015

TBL profit surges on higher sales

SEBASTIAN MRINDOKO
TANZANIA Breweries Limited (TBL) has posted 10 per cent profit growth for six months that ended on 30 September, this year, to 111.10bn/- compared to 101.33bn/- of the corresponding period last year.
TBL is a subsidiary of SABMiller and is listed on the Dar es Salaam Stock Exchange (DSE), while the former is listed on the London and Johannesburg stock exchanges.

According to TBL six months results for the period ended September, this year, earnings growth was achieved largely through volume growth, improved efficiencies as well as focused cost management whilst operating in a challenging environment.
One of the challenging market and economic conditions during the period under review was the depreciation of the shilling that increased the cost of imported production materials.
Revenue growth of 6 per cent over last year to 550.11bn/- compared to 516.88bn/- of the corresponding period, was driven by higher volumes, as well as positive product mix. Operating profit for the half year period grew by 7 per cent ahead of the prior year 159.25bn/- compared to 149.24bn/-.
Overall volumes were up for the half year compared to same period prior year due to selling price stability largely resulting from non-increase in excise rates for alcohol as contained in this year’s Finance Act.
Production and distribution efficiencies assisted in leveraging growth. Total cash generated from operations amounted to 179bn/-, of which 43bn/- was utilised to pay corporate tax, while the remaining 136bn/- funded interest and capital expenditure as well as paying dividends of 88bn/- to Company shareholders.
TBL as a major player in the beverage sector is committed to the export of its products to niche and neighbouring markets under the East Africa common market trading arrangement.
TBL has controlling interest in Tanzania Distilleries Limited and Darbrew Limited. It employs about 1,700 people and is represented throughout the country with four clear beer breweries, a distillery, a traditional beer business, a malting facility and 10 distribution depots

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