Africa-Press – Tanzania. TANZANIA Breweries Limited (TBL), the largest brewer in the country, said yesterday that Covid-19 pandemic slashed down its net profit by over 40 per cent last year.
The brewer’s financial statement showed that net profit slowed down to 89.08bn/- last December from 150.21bn/- posted in 2019.
According to TBL, one of the heaviest listed firms at Dar es Salaam Stock Exchange (DSE) in terms of market capitalisation, its total income dropped slightly but costs and expenses chewed almost twothirds of revenue generated.
The statement showed further that the brewer group revenue dropped marginally by 6.2 per cent to 961.88bn/- last December from 1.025tri/- in 2019.
TBL’s Managing Director Philip Redman attributed the profit decline generally to revenue decrease due to impacts of the global covid-19 pandemic.
“With covid-19 easing in the country, signs of recovery have been observed in the second half of the year,” Mr Redman said.
The MD said that beer revenue and volumes were mostly affected during April and May last year, whilst spirits achieved single-digit growth in the period.
“Operational overhead and sales and distribution costs increased during the year mostly due to central costs and exceptional items,” he said.
Also, the brewer’s financial statement showed that the pandemic also impacted negatively on operating and he gross profits.
It’s share on board was trading at 10,900/- at Dar es Salaam Stock Exchange (DSE) on Tuesday. The operating profit slowed down by 26 per cent to 163.39bn/- last year from 220.07bn/- in 2019 while gross profit declined by 8.0 per cent to 364.76bn/- from 397.67bn/- in 2019.
“Operating profit slowed down mostly by a decrease of revenues after being impacted by the disease,” Mr Redman said.
Operating margin ended up at 17.0 per cent compared to previous year which was 21.5 percent. However, during the year, the company recorded achievements in total assets and total equity and liabilities which have both increased by slightly one per cent.
TBL, also, injected 39.7bn/- as capital expenditure during the year compared to 67.1bn/- in the previous year.
The group’s reported cash generated from operations was 253.4bn/- of which 82.1bn/- was utilized to pay corporate income tax, 39.7bn/- to pay capital expenditure while 7.3bn/- used in financing activities.
The remaining part of the funds was retained for future activities. Total dividends of 52.9bn/- were paid during the year.
TBL as a major player in the beverage sector is committed to the export of its products to niche and neighboring markets under the East Africa common market trading arrangement.
