Twiga Cement profit rises by 60pc

Dar es Salaam. Tanzania Portland Cement Company (TPCC) net profit rose by 59.7 per cent in the year 2018, thanks to the increase in the total volume of cement sold.

Unaudited financial statement released by the company Chairman of the Board Hakan Gurdal has indicated that the company net profit increased to Sh56.9 billion in the year 2018 compared with Sh35.6 billion in the year 2017.

According to the statement total volumes sold in 2018 increased by nine per cent than on 2017, with lead to the revenue increase of 30 per cent to Sh384.9 billion from Sh268.2 billion respectively.

The statement noted that, “the year of 2018 saw continued growth in the local cement industry, with the market increasing at a higher rate than in previous years. Competition was again fierce, and yet despite the cement over capacity in the local market, TPCPLC once again strengthened its market leadership”.

It further explained that the efforts made throughout the year on the operational side to increase clinker production, whilst overcoming technical challenges, combined with the focus on producing and selling high quality products, whilst maintaining strong customer relationships and service excellence.

However, dividend paid to share holder fell by nearly 38.4 per cent top Sh29.7 billion compared to Sh48.2 the previous year.

The statement explained an increase in cash flow from investing activities to Sh2.9 billion in 2018 compared to Sh80.8 million in the previous year was the reason for these.

On future outlook “The Company continues to face increasing competition, but it will continue to work to maintain its market leadership position”.