22 November 2012

Tanzania: Brewer Posts Positive Performance

THE Tanzania Breweries Limited (TBL) has posted substantial half year profit before tax of 115.23bn/-, equivalent to 8 per cent growth compared to 107.14bn/- generated in the corresponding period last year.

The company issued a statement, portraying Group Profit and Loss Accounts for the six months ending September 2012 which show that revenues grew by 14 per cent to about 440bn/- from 386.54bn/- of the same period last year.

Similarly, gross profit, according to the financial report, grew by 14 per cent to 216.03bn/- in the period under review compared to 188.85bn/- generated in the preceding period last year. Commenting on the TBL outstanding performances, Mr Moremi Marwa, the Tanzania Securities Limited (TSI) Chief Executive Officer, said the financial statement would impact positively on the trade of its shares at the Dar es Salaam Stock Exchange (DSE).

TBL is currently one of the companies listed at the Dar bourse and its shares continue to exhibit positive performances, with prices recently closing at 2,640/-. He said that already, the TBL board which approved payment of 150/- per share as the first interim dividend for the 2012/13 financial year, contributed to move the shares which traded at 2,640/- on Tuesday from 2,620/- a day before.

The TBL financial statement shows that earning per share increased by 8 per cent to 256/- in the period under review from 238/- of the corresponding period. "Definitely, being a dividend driven market especially for retail investors there will be a positive reaction," said Mr Marwa.

Also on Tuesday, the one million shares were traded in a pre-arranged deal at a price of 3,000/-. The TBL managed to post outstanding performances in the period under review despite an increase in taxes on its brands.

The Finance Minister Dr William Mgimwa announced when tabling the national budget estimates in Dodoma in June this year that there would be a tax increase on locally produced beverages.

Moreover, apart from the effects of high inflation, the results reflect an encouraging improvement from the previous year because it comes at a time when the competitiveness of the market is growing.

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