Tanga
Cement Company shareholders will receive 86/- per share as annual dividends due
to a fall of 34 per cent in profit on last year’s financial accounts.
The
dividend is however a 65.2 per cent drop from the 247/- per share that
shareholders pocketed a year before.
The
firm that trades as Simba at the Dar es Salaam Stock Exchange closed the 2011
financial year with an after tax profit of 21bn/- compared to 32bn/- profit the
year before.
The
fall of profit was caused by higher clinker prices and technical problems at
the Tanga plant.
The
dividend comprises 25 per cent of net profit, as proposed by the firm’s
directors, acting chairperson Samuel Wangwe said.
“Consequently
the Board has recommended final dividend of 47/- per share. This amounts to 3 bn/-,
the interim dividend per share was 39/-,” said Prof Wangwe
The
last day of trading cum dividend was 30th April this year and shareholders will
get their dividend by 30th May 2012.
Prof
Wangwe noted that operations were affected by higher than normal prices of
clinker imports during the first quarter. Clinker is used in the manufacturing
of cement.
TCC
managing director Erik Westerberg also said the damage of one of the four kiln
tyres forced the company to spend more than 12bn/- in refurbishment of the
tyre, buying spare parts, maintenance experts and specialized equipment.
“Importing
the clinker and the repair of the kiln tyre and other costs reduced the
operating profit of the company by more than 12bn/- ,” said Mr Westerberg.
According
to the company annual report, the operating profit fell from about 46bn/- to 38bn/- last year, a 17 per cent drop.
Mr
Westerberg noted that there was a slow operation of the company during the
first half of last year due to delayed government funding for various
infrastructure projects, however, starting August the demand for cement
increased which created a health market throughout of the year.
Simba
cement increased its sales in line with the demand, achieving a revenue
increase of about 8 per cent from more than 149bn/- in 2010 to more than 161bn/-
last year.
Despite
the increase in revenue last year, the company faced increased in production
and distribution costs, which impacted negatively on the earnings before
interest, tax and depreciation of 17 per cent compared to a year before.
The
company is eyeing to increase its profit this year due to the promising market
of East Africa Community empowered by reduced trade barriers, which might on
other hand increase competition and possibly consolidation of regional cement
industry.
“With
the company’s expansion plan now in its final stage and with dedicated and
experienced staff, TCC is well positioned to take advantage of this situation,”
notes Mr Westerberg
Source:
The Citizen,w.thecitizen.co.tz, reported by Felix Lazaro
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