Dar es Salaam. The Tanga Cement Limited group sales revenue grew by 25 per cent last year, rising to Sh215 billion from Sh172 billion in 2017, the company’s annual report shows.
This has pushed up gross profit for the year by 91 per cent to Sh56.2 billion from Sh29.4billion achieved in the prior year.
During the period, Earnings-Before-Interest Tax Depreciation and Amortization (EBITDA) showed the significant improvement of 304 per cent to Sh34.4 billion - from Sh8.5 billion in 2017 - driven by improved sales volumes, margins and operational efficiencies.
The report states that the group achieved an operating profit of Sh14.9 billion for the year ended December 31, 2018, thus recovering from an operating loss of Sh10.99 billion in 2017.
The 2018 performance has helped to reduce the after-tax loss to Sh11.3 billion from Sh26.3 billion in 2017, according to the company’s board chairman, Mr Lawrence Masha.
“Depreciation and financing costs related to capital investment of the second integrated production line commissioned in 2016 remains notable expenses for the group,” he said in his statement.
According to the report, cash flows from trading activities improved to Sh33.6 billion in 2018, from Sh14.0 billion for the prior year. Cash flows from operations improved to Sh39.8 billion in 2018 from Sh3.7 billion for 2017 due to improved profitability.
“The company continued to build on its significant safety achievement and reached a cumulative 4.2 million hours without lost time injuries as at December 31, 2018,” he said. “Our commitment of creating a safe and sustainable work environment for all employees and contractors on-site forms an integral part of the Simba Cement corporate culture.”
However, he noted that the firm didn’t declare an interim dividend to shareholders for 2018 in line with that year’s financial performance .
“In regard to the net loss-after-interest on loans and tax for 2018, the board has decided to be prudent by not declaring a final dividends for the 2018 financial year,” he said.
The company’s chief executive officer (CEO), Mr Reinhardt Swart said the management will continue to execute its long-term business strategies, production- and supply chain efficiency, innovations, product offering and distribution solutions to our customers and national infrastructure projects.