Mbeya Cement declares first dividends after a decade

Dar es Salaam. Mbeya Cement Company Limited (MCCL) shareholders have all the reasons to smile following the company’s announcement of dividend payment a decade after such payment was last made.

The company has declared a Sh4,259 dividend per share which is a long-awaited return reflecting the company's robust performance recorded in 2023.

A press release issued on Saturday, June 1, 2024, says the pay-out marks a turnaround from the last dividend disbursed in 2014, thus underscoring the successful strategies implemented under new ownership.

The company, renowned for its Tembo Cement brand, has recently become a member of the Amsons Group, which acquired a 65 percent stake from the Swiss-based Holcim Group.

The acquisition is what the presser says has been pivotal, bringing fresh leadership and innovative strategies that have resulted in financial gains.

The achievement, the statement says, is also attributed to decreased reliance on purchased clinker, as the company ramped up production from its mines.

“With total assets standing at Sh175.2 billion and liabilities at Sh123.8 billion, MCCL’s equity is robust at Sh51 billion,” reads part of the press release.

Furthermore, the press statement says the government which holds a 25 percent stake through the Treasury Registrar, is expected to receive about Sh3 billion dividend.

According to the document, the National Social Security Fund (NSSF), the holder of a 10 percent stake, was slated to gain Sh1.2 billion in dividends.

“These substantial dividends come as a welcome boost, reflecting the company's solid financial health and future potential,” reads another part of the press statement.

The company’s extensive mine reserves and potential for increased clinker production were key highlights, “with the meeting underscoring the need for strategic investments to maximize these resources.”

The recent financial uplift was further aided by a critical waiver agreement reached in November 2023, which converted an existing loan from Cemasco Limited, easing the company’s debt burden and allowing for reinvestment in growth areas.

“Currently holding a six percent market share, MCCL is poised for expansion. The company’s management is focusing on enhancing logistics and marketing strategies to retain existing customers and attract new ones,” reads another part of the statement.