Tanzania: TCC Doubles Profit But Health Worries Raised

Source from:  AllAfrica.com 09/14/2010

THE Tanzania Cigarette Company (TCC) has announced a 90 per cent net profit for the past six months. TCC half year result published over the weekend indicates that the profit of the listed company at the Dar es Salaam Stock Exchange (DSE) almost doubled from 15.75bn/- of the same period last year to 29.89bn/- this year. TCC's Chief Executive Officer and Chairman Simaan Matta attributed the profit increase to "full price increase in July 2009 and operation cost efficiencies." The company, which is trading at 2,200/- per share, has seen operation costs increase by merely one per cent in the first six months to 21.25bn/-. The company investors saw their earning per share increased to 299/- in the first half of this year from 158/- . The report shows that the shareholders will enjoy a dividend of 100/- per share despite the company's significant investment under the same period under review. This is due to the acquisition of a land adjacent to the factory along Nyerere Road meant for expansion. Despite the huge profit, there are fears that there could be more smokers created under the same period, thus calling for alarm. Health experts say that for every puffed cigarette, chances of contracting lung cancer are wide. According to Ocean Road Cancer Institute (ORCI) Chief, Dr Twalib Ngoma, the profit is not good news to the country's economy. "Treating a lung cancer patient is estimated to cost 3m/- while the chances of surviving are very minimal. This is bad on the economy," Dr Ngoma told the 'Daily News' over the weekend. He said that the hospital receive between 10 and 15 lung cancer patients every year who report for treatment when the disease has reached an incurable state. This, according to him, is not the exact number as others are treated in private hospitals. Dr Ngoma said that the negative effects of cigarette could only be known after 25 years. There is a directive to all manufacturers of tobacco-related products to post warning messages on the packets about the health hazards as a result of smoking. Dr Ngoma said there were many more other effects from tobacco smoking. "Many people think tobacco causes only lung cancer, but it is responsible for most cancers of the larynx, mouth, esophagus, and bladder", he said. According to Tobacco Control in Africa (TCA) findings, the current upsurge of cigarette advertisement in Tanzania is a cause of great concern which is believed to be pushing use of tobacco products, particularly among the youth. A research done by TCA shows that 32 per cent of all reported cancers in Tanzania are attributed to tobacco use and, the country spends more than USD30m (about 45bn/-) to treat tobacco related cancers alone. TCA wants the Ministry of Health and Social Welfare to ban cigarette advertisements totally, so as to enhance public health and spare the youth from the hazards of tobacco use. TCC, which is among the largest taxpayers, is owned 75 per cent by Japan Tobacco International and the rest is owned by the public through stock exchange. Enditem