Tanzania Portland Cement Company Ltd (TPCC) strengthened is brand image through quality and service focus.
The Tanzanian economy grew at a continuous pace of about 7% to confirm the positive expectations from previous years. In the year under review, the Tanzanian Shilling was relatively stable compared with the major trading currencies, depreciating by less than 1% against the USD.
The cement market was continuously disrupted by the importation of large quantities of cement at the limit of unfair competition practices, which harmed the cement industry as whole an TPCC as the market leader. TPCC is always advocating for fair competition at all levels.
2013 can be defined as a challenging year. Due to strong market pressure and production limitations resulting from an accidental fire on the main transformer, TPCC suffered a reduction of 10% on cement sales volume. Pressure on prices together with the reduction of volumes, had a negative impact of 14% on our accumulated turnover. All the above, negatively impacted TPCC’s Operating Profit by 46% Nevertheless, the overall financial performance of TPCC, even though not at expected levels, continued to add positive value for our shareholders, with strong signs of recovery towards the end of the year.
TPCC has worked hard to increase its operational excellence, reduce production cost, while maintaining a leadership position in the Tanzanian market. The start-up of a new cement mil in the second part of the year, will allow us to meet future market challenges.
The Board would like to thank all TPCC’s stakeholders for their support during the past year and looks forward to continued good relations for the year to come.
The Board proposes a dividend for 2013 of TZS 195 per share. This is an increase of 5% compared to the previous year. The proposed dividend represents 93% of the Net Profit for the year.
The Register of Members will close on 16 April 2014. The last day of trading cum dividend will be 11 April 2014. Dividend will be paid on or about 30 June 2014.
BY ORDER OF THE BOARD
Jean – Marc Junon
Chairman of the Board
20 March 2014