Tanzania: TCC Profits Up By 32.5 PC

Source from:  Tanzania Daily News 10/09/2011

THE Tanzania Cigarette Company Limited (TCC) half year profits have jumped to 39.6bn/- as of last June, a 32.5 per cent increase compared to 29.8bn/- recorded in the similar period last year. According to a preliminary half year report approved by the board, the profit was attributed to price hike, increased sales of higher margin brands and operational cost efficiencies. "The price rise as well as increased sales of higher margin brands and operational cost efficiencies offsetting 8 per cent excise tax hike in July last year, rising inflation and shilling depreciation contributed greatly to the company's impressive profits," said the report. The positive profit trend is also attributed to the switch to the use of natural gas for power generation; the move which has greatly helped the company survive the power blues. The gross turnover went up by 22.8 per cent to 187.1bn/- last June compared to 152.3bn/- recorded in the similar period last year. The company's gross and net profits rose by 30.3 per cent to 83.5bn/- compared to 64.1bn/- last year said the report. The company has expressed optimism for outstanding performance in the future basing on the passion and quality of TCC's employees, a commitment to excellence in execution, the equity of TCC's brands, the strength of its sales and distribution infrastructure, stated the report. Also the support of its parent company, Japan Tobacco International (JTI) and management's ability to react to and address new challenges and opportunities. The TCC was incorporated in 1996 and began trading at the Dar es Salaam Stock Exchange (DSE) two years later and today shows great future potential. The company which forms part of the industrial and allied sector at the Dar es Salaam bourse has been showing impressive performances, attracting both local and foreign investors to buy its shares. For example, the market outlook for last week depict that local investors continued to show confidence in the sector more than any other sector as most of the locals participation was based on purchasing of shares in the sector. According to the weekly commentary by the Tanzania Securities Limited (TSL), the counters in the sector were generally characterised by strong demand as they have been for a number of weeks. Enditem