DESPITE intense competition, the Tanzania Portland Cement Company Limited (TPCC) posted a 22 per cent increase of net profit to 61.57bn/- for the year ending December 2012, up from 50.6bn/- in 2011.
According to the TPCC statement of audited results, local cement producers were in the period under review exposed to imports as East African Community (EAC) governments decision for the fourth time not to reinstate suspended duties on cement in the common external tariff. "Where the industry is ready to face competition, it is hoped that there will be fair play in the market," TPCC said in the statement.
During the period under review, the company's turnover increased 15 per cent to reach 249.11bn/- compared to 217.25bn/- recorded in the year before. The cost of sales was pushed up by double digit high inflation rates and energy tariffs rising to 126.7bn/- compared to 117.7bn/- registered in the year ending 2011. However, in the year under review, the shilling remained relatively stable compared with the major trading world currencies depreciating by less than 1 per cent particularly against the US dollar.
The TPCC statement stated further that after completion the upgrade of one of old kilns, it will be positioned to supply the growing demand for high quality cement. The TPCC board has also approved further expansion project in a new cement mill. The new mill which is expected to be completed mid next year will make the cement factory the biggest producer in the sub region.
The company will also this year enter into a new business line by producing aggregates for the growing construction sector. In the meantime, the Board of Directors proposed a dividend of 185/- per share in the year under review, indicating a 2.8 per cent increase compared to only 180/- offered in the previous period.