Dar es Salaam. Profit after tax for the Tanzania Cigarette Company (TCC PLC) increased by 5.7 per cent to Sh47.9 billion in the year to December 31, 2018 as compared to the previous year.
The company attributes the good performance, partly, to the decision of the government not to increase excise duty of cigarettes in the budget speech of the 2018/19 financial year.
A financial statement released by the company yesterday also indicated that revenue jumped by 4.3 per cent to Sh436.5 billion in the same period. In the 2018 financial year dividends per share increased by 12.5 per cent to Sh450, the statement said.
“Our good performance comes from massive investments that we made in our operations, unchanged excise duty and our good prices in the market,” Chief executive officer of TCC PLC, Alan Jackson, said in the statement.
Various strategies were put forward, said Jackson, specifically to promote Portsman and which paid off as the popular brand had higher sales in 2018 than the previous year.
TCC PLC board chair Paul Makanza said: “Ongoing investments in transport and fuel systems will increase productivity in the company. It is our hope that the government will maintain the good economic conditions. Returning of peace and stability in the DR Congo could also be good news to us,” Mr Makanza noted. The company reduced energy consumption in 2018 by 13 per cent. It also reduced carbon emissions by 14 per cent and it has already started recycling 11 per cent of its wastewater, the statement claimed.
Mr Makanza said he was thankful for the government for not increasing the excise duty for cigarettes in the 2018/19 budget, which has partly contributed to an increase in profit for the company.
“We are asking, if it is possible, that the government actually considers reducing the excise duty to enable companies perform even better,” Mr Makanza pleaded.
Listed on the Dar es Salaam Stock Exchange (DSE) since 2000 TCC PLC is a member of the Japan-based JT group of companies. Established in 1961, it has more than 400 employees and 16 branch offices.
Some of the brands that it manufactures and sells include Portsman, SM, Embassy, Camel, Safari and Club.