News Column

Twiga Cement Dividends Up Five Per Cent

May 1, 2014

THE Shareholders of Tanzania Portland Cement Company (TPCC) Limited will soon have a reason to celebrate, following the decision by the firm to increase 2013 dividends by five per cent.

TPCC Managing Director, Mr Alfonso Rodriguez, said at the 22nd Annual General Meeting (AGM) in Dar es Salaam on Tuesday that the board was proposing a dividend of 195/- per share, up from 185/- in 2012, which was unanimously endorsed by the shareholders.

This, however, is despite the fact that the cement firm suffered a 14 per cent drop in revenues in 2013 as compared to 2012. Revenues dropped from 249.112bn/- in 2012 to reach 213.77bn/- in 2013.

The company, which trades at the Dar es Salaam Stock Exchange (DSE) as Twiga, also saw its profit for the year fall from 61.57bn/- in 2012 to 37.64bn/- in 2013, mainly due to the fire that, earlier last year, razed the main transformer which feeds power to the plant.

"With the accident, we then started using imported clinker and also to rent and operate electricity generators, which resulted into an increase in operational costs," said Mr Rodriguez.

The firm says soaring investment in infrastructure construction as well as increased public and private sector demand make cement production a big business in Tanzania.

However, the same attracts importers of the vital construction materials to flood the markets with cement that create unlevelled playing ground to local manufacturers.

The company, which holds a 36 per cent market share of cement sales in the country, says cement imports went up by 27 per cent last year.

However, according to Mr Rodriguez, TPCC and other affected players were taking deliberate measures to deliver the right message, regarding the impact of the imports to relevant authorities.

Twiga predicts that 2014 will also be a challenging year as it forecasts an increased competition mainly after commissioning of new firms.

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Source: AllAfrica

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