The Management of Tanzania Cigarette Company Ltd is pleased to report
half year results to June 30, 2015.
Year to date performance
Our top line grew 10% to TZS 246bn (June 30, 2014: TZS 224bn) driven by
volume and pricing. Net profit however declined 4% to TZS 34bn (June 30,
2014: TZS 35bn) due to: the sharp depreciation of the Tanzanian Shilling;
the carry-over impact of the 25% excise tax increase in July 2014 and; a
one-off TZS 5bn restructuring cost of our Export Division.
We continued to drive operational efficiencies and reduced our normal
operating costs by 15% (June 30, 2015: TZS 34bn vs. June 30, 2014:
TZS 40bn). However, these savings were off-set by unusual and one-off
costs. Accordingly, the overall operating costs increased by 15% over the
corresponding period in the prior year.
We generated TZS 46 billion in cash flow, of which TZS 18 billion was used
to pay corporate tax to June 30, 2015 and a final gross dividend of TZS 40
billion for the year ended December 31, 2014. Despite the decline in net
profit, our net cash position as at June 30, 2015 remained strong at TZS 42bn.
Dividends to shareholders
The Board of Directors declared an interim gross dividend of TZS 300 per
share for the half year ended June 30 (June 30, 2014: TZS 250 per share).
This will be paid on or about November 12, 2015 to all shareholders on the
Register of Members as at October 19, 2015. The last day of trading cum
dividend will be October 13, 2015 and; ex-dividend will be October 15,
2015 full year outlook
We anticipate a better volume momentum in the second half of the year.
Coupled with further costs optimization, we expect full year operating
costs to be in line with prior year. I must however caution that currency
headwind will significantly affect full year results.
I want to thank all our stakeholders for their continued support to the
business and, I look forward to updating shareholders on 2015 full year
results early 2016.
Please refer to the link below for further details