TCC achieves record volume sales in 2021

Tanzania Cigarette Company (TCC Plc) achieved record sales as the company marked 60 years of operations in Tanzania.

Announcing the financial results for the year ended December 31, 2021,during  at the Company’s Annual General Meeting (AGM), the TCC Plc Board Chairman, Paul Makanza said it was a historic record year for the company.

“Last year, December 4, 2021, TCC Plc marked 60 years of operations in Tanzania. It’s been a remarkable 60-year journey of transformation, adaption, and resilience. We take pride in our strong heritage in Tanzania and look forward to another successful 60 years,” said Mr. Makanza.

 According to the results, TCC achieved record sales volume, with net profit up by 65.8 percent from prior year while revenue grew by 12 per cent versus prior year to Sh312.9 billion.

“Gross profit increased by 14.1 percent to Sh171.9 billion and profit before tax was up 59.6 percent to

Sh86.3 billion and net profit grew by 65.8 percent to Sh59.6 billion, driven by record sales volume and operational cost efficiencies,” he said.

Mr. Makanza added, total sales volume increased by 14.4 percent against prior year, reflecting the strength of TCC’s revised domestic distribution model and a return to normal trading conditions after demand and supply chain disruptions in 2020 due to theCOVID-19pandemic.He went on to say that operating costs declined by 11.4 percent versus prior year due to operational efficiencies and cost savings across the entire organization.

The company's Value-added tax (VAT) and excise tax contribution increased by 14.6 percent to Sh222.7 billion in 2021 compared to Sh194.3 billion in 2020.

 According to the report, gross dividend per share for the year ended December 31, 2021, is Sh800per share (2020: Sh550 per share). This, according to the Chairman includes an interim gross dividend of Sh250 per share and special dividend Sh250 per share paid out in November 2021 and a final gross dividend of Sh300 per share to be paid out on May 17, 2022, following shareholders’ approval.

TCC Plc’s General Manager and CEO, Mr. Michal Bachan said he is optimistic about TCC Plc’s performance in 2022.

“Building on a strong momentum from 2021, we started the year with excellent results in the first quarter. Our share of market and sales volumes have continued to grow indicating a positive outlook for 2022. We are committed to continue delivering high quality products to our consumers. TCC Plc’s talented employees who have worked really hard and together as One Team are the most significant driver behind our fantastic results in 2021 and in the 1st quarter of this year”, he added.

This year, TCC Plc received a Top Employer award for the fifth consecutive year. “Top Employer award reflects TCC Plc’s commitment for people development. This is a reconfirmation that our company is an employer of choice for Tanzanians”, he added.

TCC Plc, which is part of Japan Tobacco International (JTI), has made a significant contribution to the growth of the tobacco sector and the whole tobacco value chain, that is, from seed to cigarette product in Tanzania.

 Currently, JTI purchases about 14million Kilograms of quality tobacco in Tanzania.

According to the report, TCC Plc achieved an annual production record of 8.4 billion cigarettes in 2021, which was the highest annual output in the factory history, breaking the records of the past 60 years. Out of this, 5.2 billion was sold in the domestic market and the remaining 3.2 billion was sold in the export markets including DRC.

 TCC Plc’s has continued to invest in technology and its factory has been ranked as the third best factory amongst JTI global markets for maintaining customer-centricity through quality sensors and utilization efficiency.

As part of their corporate social investment programs, TCC Plc supports communities directly and indirectly through partnerships with social and cultural partners.

 In 2021, TCC Plc supported over 500 women and older youths organized in groups (with sewing machines, sunflower oil pressing machines, brick making machines and maize mill machines) and over 1,520 assistive devices were distributed to people with disabilities. TCC Plc invests in scholarship programs for Tanzanians and this month the first sponsored Tanzanian scholar left to Japan to pursue a master’s degree in earth sciences.

In addition,25 sponsored students of visual and performing arts graduated earlier this year at Bagamoyo College of Arts.