AfricaPress-Tanzania: AS it marks 60 years of operations in the country, Tanzania Cigarettes Public Limited Company generated 43.2bn/- in operating cash flow as of June 2021.
TCC Plc was officially launched by the late Mwalimu Julius Kambarage Nyerere in December 1961, paid 12.7bn/- to Treasury as corporate tax.
Commenting on the half year unaudited results, TCC Plc’s Board Chairman, Paul Makanza, they are more solid compared to the first half of 2020. “Operating costs remained flat, reflecting operational efficiencies in all business areas and the need to preserve cash in uncertain times,” Makanza said adding that the cigarettes manufacturer also paid the final gross dividend of 30bn/- for the year ended December 31, 2020.
According to the statement, gross revenue grew by 11 percent to 263.8bn/- up from 237.5bn/- on June 30, 2020 while gross profit increased by 15.2 percent to 84.4bn/- from 73.3bn/- during the same period. The results also indicate that net profit increased by 10.5 percent to 23.9bn/- from 21.6bn/- during the period. “This was driven by volume growth and cost efficiencies,” the TCCPlc Board Chair added.
On domestic and export volumes, the market’s largest cigarettes manufacturer saw an increase of 16.5 and 3.7 percentages respectively while overall volume increased by 12.5 percent, reflecting the strength of the revised domestic distribution model and a return to normal trading conditions after demand and supply chain disruptions in the first half of 2020 due to the coronavirus pandemic.
As a result of the good performance, the board of directors approved an interim ordinary gross dividend of 250/- per share as well as a special dividend of 250/- per share to be paid starting mid October. Shares will trade cum-dividend until the first week of September this year.
The TCC Plc General Manager, Michal Bachan said the company has achieved strong results and is optimistic about the second half-results up to December, 2021. “Sustainability of these great results will depend on continued relentless drive of the team to push the business forward as well as various factors including continued improvements in the business environment, effectiveness of recently announced measures to spur economic growth and addressing the COVID-19 pandemic effectively,” Bachan said.
He said TCC Plc will continue to be a responsible and business partner of choice while contributing to growth of the country’s economy as well as give back to the community through impactful and sustainable community investment projects.
“Our community investment programs focus on people, arts and culture and the natural environment. We have in the past year donated wheelchairs, white canes, crutches and tricycles worth over 130m/- to various groups of people with disabilities,” the TCC Plc’s GM added.
He further noted that in supporting government efforts in reducing poverty, the company donated over 100 sewing machines to women groups in various regions. “Beginning next year, TCC Plc in partnership with Embassy of Japan, will support a master’s scholarship program to qualified Tanzanian students who wish to pursue courses at Japanese universities,” he noted.
“As TCC celebrates 60 years with such outstanding results and achievements, the company will continue to invest in its people through high standards employee welfare, wellness and benefits that will motivate them and continue to stimulate good results for the company,” Bachan promised.
