Twiga Cement profit soars by 50%

The Tanzania Portland Cement Company (TPCC) net profit went up by almost 50 per cent in 2014, thanks to the firm's strengthened brand image through quality and service delivery to the market.

The company, which goes by its brand name Twiga, announced in a published statement a profit increase of 47.3 per cent to 55.44bn/- for 2014, up from 37.64bn/- in the preceding year.

Twiga Cement Chairman, Mr Jean-Marc Junon, attributed in the statement that the country's GDP growth by 7.0 per cent last year helped to lift consumption of cement in market significantly.

"(The) increase in revenue, coupled with efficient cost management, resulted in an increase in operating profit of 55 per cent (to 76.29bn/-) compared to 2013," Mr Junon said.

Twiga recorded an increase in sales volume of 15 per cent versus 2013 as a result of a better production efficient, commissioning of a new cement mill in the last quarter and re-introduction of Twiga extra in the firm's product mix.

The Chairman said cement industry prospects are positive as consumption in the country and the East African bloc continued to grow over the last few years.

"Having an expanded capacity, TPCC is well placed to meet this growing demand," the Chairman said. The profitability of Twiga, which is listed on the DSE, pushed the firm's full year dividend by 37 per cent to 267/- against 195/- of 2013. Midyear the company paid a dividend of 70/- per share.

Earnings per share also went up by almost 5 per cent to 308/18. Zan Securities Chief Executive Officer, Mr Raphael Masumbuko, said the results would turn-around Twiga share price at the bourse from bearish to bullish mode.

"The financials would make those who wanted to sell to hold on their shares waiting for dividends, while those on the buying side increase their demand eyeing for dividends as well," Mr Masumbuko said.

Looking forward, the CEO said, the share will start appreciating and ending an almost three months of sliding.

According to Tanzania Securities, daily market report of Wednesday, Twiga share depreciated by 6.25 per cent in the last eleven weeks to 3,750/- a piece.

Twiga share last day of trading cum dividend is April 17, 2015 and dividends would be paid around June 30, 2015. 
Source: Daily News, reported from Dar es Salaam, Tanzania
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