Tanzania Breweries Limited Group of Companies has delivered a satisfactory set of results for the six months ended 30th September 2014 despite challenging market conditions.
Revenue growth of 8% over last year was driven by price increase following the 20% increase in excise duty as well as positive product mix.
Overall volumes in Tanzania declined for the half year compared to the same period prior year. The decline was largely driven lower consumption following the 20% increase in excise duty on beer, which was passed onto consumer in July 2014. The majority of our brands were negatively affected by this significant increase in excise duty.
Operating profit for the period ended 30 September 2014 was 17% ahead of prior year. This was despite the depreciation of Tanzanian Shilling over the period which increased the cost of imported production materials.
Total cash generated from operations amounted to Tshs 180 billion, of which Tshs. 39 billion was utilisted to pay corporate tax, while the remaining Tshs. 141 billion fuinded interest and capital expenditure as well as paying dividends of Tshs 74 billion to company shareholders.
The growth in earnings was achieved through favorable product mix, improved efficiencies as well as focused cost management whilst operating in a challenging environment.
I would like to thank the Board, management and employees for their efforts and continued support as well as our customers, consumers and all stakeholders for their loyalty.
By Managing Director
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