Tight cost control boosts Twiga cement’s profitability

Tanzania Portland Cement Company’s (TPCC) positive financial results last year have been attributed to tight cost control within the inflation level.

TPCC Managing Director Pascal Lesoinne said in Dar es Salaam  that the cost control helped to increase the firm’s net profit by 22 per cent to 61.57bn/- despite the indiscriminate import exacerbated competition. 

“… the company managed to create additional value by increasing its turnover and keeping costs under control.”

The operation of the company was also supported by the returning of stable power supply, the activity in construction sector that grew by eight per cent with a growth of cement market of 10 per cent to 2.7 million tonnes in the year.

“Focus on customer needs and satisfaction has also translated in tailor-made delivery solutions and enhanced customer technical support. We want to assist our customers in their business,” Mr Lesoinne said.

The Core Securities Chief Executive Officer George Fumbuka said the Twiga results speak for themselves but are actually better than they appear at first, giving the level of competition that was very stiff, especially from within the East African region.

“… Notwithstanding the competition in dollar terms, Twiga has managed to keep its prices steady and as a result has increased market share,” Mr Fumbuka said.

To meet the market demand, the cement firm has rehabilitated its kiln three that will end dependency on clinker imports by producing its own 250,000 tonnes per annum.

The firm is also constructing an additional cement plant that has the capacity of producing 700,000 tonnes and expecting to go into production by mid next year. 

“The Board has approved further expansion project in a new cement mill. The new mill which is expected to be completed by mid-2014 will make TPCC the biggest cement producer in the sub- region,” Twiga Chairman Jean-Marc Junon said.

On the Dar es Salaam Stock Exchange, the value of Twiga shares continued to rise and is now trading at 2,620/- after gaining by 1.53 per cent. “The secret is efficient operations, dedicated, hardworking and well-trained staff and stringent cost control,” said Mr Fumbuka.
Source: The Daily News, www.dailynews.co.tz, reported from Dar es Salaam
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