Tanzania Cigarette Company (TCC) shareholders are excited on prospects of earning more money after their company made significant profit on the back of strong sales volumes last year.
TCC Plc's Board Chairperson, Paul Makanza announced at shareholders Annual General Meeting in Dar es Salaam on Tuesday that the company registered record breaking sales volumes in 2022 that pushed profit to 106.8bn/- up from 86.3bn/- in 2021.
He attributed the success to company's comprehensive business strategic approach, exceptional product portfolio, and steadfast partnerships.
He commended TCC's performance of strong top and bottom-line growth, robust operating cash flows and increased shareholder value for the third consecutive year.
"In terms of our financial results, I am pleased to report that our profit before tax (PBT) for the year increased by an impressive 23.7 per cent to 106.8bn/- compared to 86.3bn/-in 2021, he said in a statement.
"Although our income tax increased by 40.2 per cent due to prior years' income tax adjustments, our profit after tax (PAT) still showed a remarkable increase of 16.2 per cent to 69.2bn/- from 59.6bn/- in 2021. This growth in profit was driven by strong volume growth, operational efficiencies, and effective cost management."
According to the CEO and General Manager, Takashi Araki, domestic volumes reached 5.7 billion units during the period, which was a 10 per cent increase from 2021.
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The company's highest ever manufactured volume reached 9 billion units while at the same period, its profits grew by double digits, he said.
Araki attributed the secrets of the company's impeccable achievements to its human resource.
"Our dedicated employees have been our greatest asset, enabling TCC Plc to be recognized as a top employer in Tanzania and Africa for five consecutive years," he said.
"We will continue to invest in our people and foster a diverse, inclusive, and empowering workplace environment."
He also extolled government's efforts in creating a trustworthy and business-friendly environment which included providing incentives for using locally-sourced tobacco and the stabilization of the excise duty that had enabled the company to improve its market.
On social sustainability, Araki explained: "Sustainability is a core priority at TCC Plc. We have undertaken numerous initiatives to protect the environment, operate responsibly, and ensure good governance, including investments in solar energy, water and waste management projects over and above community investment".
