Shareholders to earn less as TPCC revenue drops

DAILY NEWS Reporter

TANZANIA Portland Cement Company Limited (TPCC) Shareholders will earn less this time as 2016 profits dipped due to drop in revenue due to market conditions, which have resulted to the decrease in market selling price.

According to the company’s audited results released by the Company’s Board Chairman, Alfonso Rodriguez, the total revenue has decreased by 4 percent in 2016 compared to 2015.

Following the actual situation, the board has proposed 270/- as a dividend for 2016 per share compared to 306 per share in the previous year.

The proposed dividend includes two interim amounts of 120/- per share and 90/- per share paid in October 2016 and February 2017 respectively.

The report indicates that the TPCC reached an operating profit of 53.8bn/-, which was 27 percent below compared to that of 2015.

The report explains that the decrease was due to the reduction in revenue and impairment of assets and that fixed and variable costs were broadly flat year on year.

However, the report indicates that cement demand in the country and in the East African region has been growing steadily in recent years.

“TPCC having invested in expanded capacity, the rehabilitation of the old clinker lines, improved grinding and packing facilities, internal; system integration and process improvements, is well placed to meet this growing demand,” reads part of the report.