R.B
JF-Expert Member
- May 10, 2012
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[h=3]Tanzania Breweries Limited (TBL) has approved 58.9bn/- in paying its shareholders 200/- dividend per share for the year ending April 2012, about 17 per cent interest which is more than twice the returns paid by most commercial banks.[/h]
Mr. Cleopa David Msuya
Speaking during the 39th companys Annual General Meeting (AGM) in Dar es Salaam, the TBL Board Chairman, Mr Cleopa Msuya, said despite some economic hardships last year, the firm managed to post outstanding performances that led to hefty dividends to shareholders.
Apart from market competitions, shilling fluctuations, power and water problems, TBL managed to record an outstanding performance thus making the AGM to approve the dividend of 200/- per share amounting to 58.9bn/- as proposed by the board of directors, said Mr Msuya.
For example, the prolonged interruptions in power supply together with the 40 per cent increase in electricity tariff had an adverse impact on the cost of manufacturing. Likewise, the weakening shilling against world currencies increased pressure on the cost of imported goods and raw materials.
However, the impact of change of the fundamental factors was minimised by effective cost controls, currency hedging and improved efficiencies which resulted into 24 per cent increase in gross profit over the period under review. According to the companys financial statement, the profit jumped to 166.4bn/-, compared to 121.6bn/- posted in the year earlier. The profit before income tax increased by 30 per cent to 239bn/- compared to 219bn/- recorded in the corresponding period.
Similarly, TBL total revenues rose by 26 per cent to 801bn/- compared to 635.8bn/- of the previous period largely due to volume gains, improved product mix in the premium segment as well as below inflationary price increase adjustment.
The companys contributions to the government coffer comprising of income tax and VAT increased to 312bn/-, equivalent to 32 per cent in the year ending March this year. Mr Msuya told the shareholders that TBL intends to utilise farm inputs and raw materials sourced in the country so long as they meet the quality and procuring price does not affect cost of production.
Speaking during the 39th companys Annual General Meeting (AGM) in Dar es Salaam, the TBL Board Chairman, Mr Cleopa Msuya, said despite some economic hardships last year, the firm managed to post outstanding performances that led to hefty dividends to shareholders.
Apart from market competitions, shilling fluctuations, power and water problems, TBL managed to record an outstanding performance thus making the AGM to approve the dividend of 200/- per share amounting to 58.9bn/- as proposed by the board of directors, said Mr Msuya.
For example, the prolonged interruptions in power supply together with the 40 per cent increase in electricity tariff had an adverse impact on the cost of manufacturing. Likewise, the weakening shilling against world currencies increased pressure on the cost of imported goods and raw materials.
However, the impact of change of the fundamental factors was minimised by effective cost controls, currency hedging and improved efficiencies which resulted into 24 per cent increase in gross profit over the period under review. According to the companys financial statement, the profit jumped to 166.4bn/-, compared to 121.6bn/- posted in the year earlier. The profit before income tax increased by 30 per cent to 239bn/- compared to 219bn/- recorded in the corresponding period.
Similarly, TBL total revenues rose by 26 per cent to 801bn/- compared to 635.8bn/- of the previous period largely due to volume gains, improved product mix in the premium segment as well as below inflationary price increase adjustment.
The companys contributions to the government coffer comprising of income tax and VAT increased to 312bn/-, equivalent to 32 per cent in the year ending March this year. Mr Msuya told the shareholders that TBL intends to utilise farm inputs and raw materials sourced in the country so long as they meet the quality and procuring price does not affect cost of production.
