TANZANIA Portland Cement’s pre-tax profit increased by 25 per cent last year, thanks to the rise of sales and volume, the management of the company has stated. The financial results of the firm, which trades as Twiga Cement, showed the pre-tax profit jumped to 107.42bn/- from 85.87bn/- in 2019.
Twiga Chairman Hakan Gurdal said in the statement that despite many challenges, including Covid-19, the company delivered a strong performance last year.
“The increased revenue combined with disciplined cost management led to the operating profit of 104.9bn/-,” Mr Gurdal said yesterday. The leader of the cement market said the turnover and sales volume increased by 13 per cent and 6.0 per cent, respectively, pushing gross profit to 135.32bn/- from 118.87bn/-.
“The continued focus on maintaining excellent customer relations and producing high quality products enabled Twiga to again demonstrate its strength as the leading player in the industry,” Mr Gurdal said.
The statement showed, without giving figures, that the clinker production reached all-time higher last year thanks to good operating performance plant and machinery. “The operating performance of the plant and availability of the machinery was good, ensuring clinker production reached record levels,” the Chairman said.
Twiga, a company listed at Dar es Salaam Stock Exchange (DSE) main market, posted a net profit increase of 107.42bn/- up in 2020 from 85.87bn/-in 2019. Due to the profit recorded, the board proposed a dividend of 390/- a share, which will be offered on or about end of June, compared to 290/- offered in 2019. Its share was trading at 2,500/- on Wednesday.
Mr Mr Gurdal said the future looks bright as the cement demand in Tanzania and in the East African region has been growing steadily in recent years.
“Twiga is well placed to meet this growing demand and will continue to work to maintain its market leadership and position,” he said.
Twiga, part of Heidelberg Cement Group, had invested 105bn/-over the last five years in modernising its operations and increased capacity to 1.9metric tonnes from 1.07 metric tonnes in 2013.