Tanga Cement dashes dividend hopes despite profit growth

Dar es Salaam. High demands for cement for construction of industries and infrastructure turned into opportunities for Tanga Cement Plc, after the group’s gross profit improved by 91 per cent last year compared to the previous year.

The company’s audited financial report for the year ended in December 2018 shows gross profit standing at Sh56.2 billion last year, from Sh29.4 billion in 2017 while operating profit jumped to Sh14.9 billion last year from Sh10.99 billion recorded in the previous year.

Group sales revenue grew by 25 per cent to Sh214.9 billion from Sh171.8 billion in 2017.

Cash flows from trading activities improved to Sh33.6bn in 2018 from Sh14.0bn for the previous year while cash flows from operations improved to Sh39.8bn in 2018 from Sh3.7bn in 2017 due to improved profitability.

“We remain optimistic on the positive impact of infrastructure development plans under the government’s vision 2025 programme and expect the projects to continue gaining momentum this year, as the company has capacity to meet a significant share,” said board chairman Lawrence Masha.

Last year’s performance has helped to reduce after tax loss to Sh11.3 billion from Sh26.3 billion recorded in 2017.

Also depreciation and financial costs related to the capital investment of the second integrated production line commissioned in 2016 remains to be notable expenses for the group.

“Our commitment to create a safe and sustainable work environment for all employees and contractors on site forms an integral part of the Simba cement corporate culture,” the chairman added.

However the chairman said that was not a declaration of interim dividend to shareholders for last year.