Tanzania: SABMiller’s subsidiary Tanzania Breweries Group posts a 19% operating profit increase
SABMiller’s subsidiary Tanzania Breweries Group (TBL) reported strong performance for the twelve months ended 31 March 2006, SABMiller released June 06. Sales grew by 13% on the same period last year, and operating profit by 19%. Reported profit before income tax is up by 23% to Tshs 58 billion, cash generated from operations exceeded Tsh 86 billion, total taxes paid of Tshs 122 billion, up 11%.
The growth in sales was due to organic growth in clear beer, wines and spirit volumes. Volume growth benefited during the first half of the year from higher disposable income levels, resulting from good cash crops and the multiplier effect from increased mining activities. Trading conditions however softened towards the end of the financial year due to uncharacteristic weather conditions and the impact of rising food and fuel prices on disposable income.
Depreciation of the Tanzanian shilling against major trading partners’ currencies resulted in increased pressure on the cost of imported goods and raw materials, whilst the significant rise in fuel prices adversely affected distribution costs. The interrupted water and electricity supply during the later part of the year had an impact on production efficiencies and costs. Despite increased cost pressures the Group’s cash generated from operating activities still exceeded Tshs 86 billion.
Tshs 26 billion was utilised to pay corporate tax, Tshs 15 billion funded capital expenditure and interest while the remaining Tshs 45 billion funded most of the Tshs 61 billion paid as dividends to shareholders.
The total dividend for the year was Tshs 177 per share, compared with Tshs 190 per share paid last year. The previous year’s dividend included a special dividend of Tshs 44 per share. No special dividend has been proposed by the Board for the year under review. The dividend, as was the case last year, has been paid by way of a first and second interim dividend of Tshs 82 and Tshs 95 per share respectively.
The outlook for the year ahead will depend on the sustainability of the economy and the utilities infrastructure, the strength of the Tanzanian shilling and the impact of excise and other direct tax increases. However, the Board remains optimistic that the Tanzania Breweries Group will maintain its proud record of achieving.
Tilbage
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