TBL yet to announce dividends for the first half of 2021

Dar es Salaam. The Tanzania Breweries Limited (TBL) is yet to announce dividends for the first half of 2021 in a bid to preserve liquidity in the light of uncertainty caused by the Covid-19 pandemic.
According to the company’s press statement signed by the country’s director Jose Moran, the brewer will instead take a decision to make the announcement in the second half of the year
“Despite the growth in revenue by five percent this year, operating profit remained relatively flat, with marginal increase of 0.2 percent,” reads a part of the statement released on Monday, September 20, 2021.
This, the statement adds, is primarily due to a significant increase in sales and marketing investment compared to the same period last year.
Similarly, the increased sales and marketing investment coupled with higher employee bonus accruals compared to previous year have led to a decline in operating margin from 17.1 percent last year to 16.3 percent in the current year.
 The group profit after tax for the period grew by 23 percent compared to the last year driven by prior year deferred tax adjustments.
TBL says, a total of Sh16.185 billion was invested in capital expenditure during the six months period compared to Sh10.885 billion in the first half-year of 2020.
The group’s reported cash from operations was Sh82.776 billion, of which Sh33.484 billion was used to pay corporate income tax.
Further, some Sh16.185 billion was used to pay capital expenditure, Sh1.047 billion for financing activities and the remaining funds were retained for future activities.