Tanzania Cigarette Company – Unaudited results for the six months ended June 30, 2021

By Published On: August 23rd, 2021Categories: Corporate announcement, Earnings

On behalf of the Board of Directors of Tanzania Cigarette Public Limited Company Plc (TCC Plc), I am pleased to announce the unaudited results for the six months ended June 30, 2021.

A solid first half 2021 compared to first half 2020

Gross revenue grew by 11.0% to TZS 263.8 billion (June 30, 2020: TZS 237.5 billion) and gross profit was up by 15.2% to TZS 84.4 billion (June 30, 2020: TZS 73.3 billion). Whilst net profit increased by 10.5% to TZS 23.9 billion (June 30, 2020: TZS 21.6 billion), driven by volume growth and cost efficiencies

Domestic and export volumes grew by 16.5% and 3.7%, respectively. Overall, volume increased by 12.5%, reflecting the strength of our 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 COVID-19 pandemic.

Operating costs remained flat, reflecting operational efficiencies in all business areas and the need to preserve cash in uncertain times.The Company generated TZS 43.2 billion in operating cash flow to June 30, 2021 of which TZS 12.7 billion was used to pay corporate income tax and the final gross dividend of TZS 30 billion for the year ended December 31, 2020.

Dividend to shareholders

The Board of Directors approved an interim ordinary gross dividend of TZS 250 per share(June 30, 2020: TZS 250 per share) as well as a special dividend of TZS 250 per share. The dividends will be paid less 5% withholding tax on or about October 12, 2021. Shares will trade cum-dividend until September 07, 2021.

Prospects to December 31, 2021

The Directors are cautiously optimistic about second-half results to December 31, 2021. Sustaining the positive momentum achieved in the first half will depend on continued improvements in the business environment, the effectiveness of recently announced measures to spur economic growth and addressing the COVID-19 pandemic effectively through a nationwide vaccination campaign. Management will continue to take appropriate actions to achieve its revenue and profit targets for the year.

Note of thanks

On behalf of the Board of Directors, I thank all our stakeholders for their continued support to the business. I look forward to updating you with our full-year 2021 results in early 2022.

Paul Makanza
Chairman of the Board, TCC Plc

The contents of the post above were obtained from third parties, which We, AfricanFinancials, believe to be reliable. However, We do not guarantee their accuracy and the above information may be in condensed form. The reader is encouraged to refer to the original source of the information, which, in most cases, is in PDF format and on the originating company's letterhead. While We endeavour to replicate the original content accurately, We cannot guarantee the absence of errors in the above article and We disclaim any liability regarding reliance on information provided in this article.

Tanzania Cigarette Company Limited (TCC.tz)

Share price: 17,000.00 Shillings (0.00 | 0.00% – 23/12/24)

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