TCC revenue surges by 10 percent

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President Samia Suluhu Hassan presents an award to the TCC Plc general manager and CEO Takashi Araki after the company emerged as the Overall Winner in the Cigarette Manufacturing Sector during the 2023 episode of the President’s Manufacturer of the Year Awards (PMAYA) 2023. PHOTO | FILE

What you need to know:

  • The company’s revenue grew by 9.7 percent to Sh373.5 billion, fuelled by an 11 percent increase in sales volume

Dar es Salaam. Revenue for TCC Plc increased by 9.7 percent in 2023 as the company braved a challenging environment to push volume growth to deliver outstanding results across financial and non-financial metrics.

The firm’s financial results, which were published recently, show that the company garnered Sh373.5 billion in revenues, a 9.7 percent increase from what was achieved in 2022.

This was against the backdrop of higher costs of imported raw materials, elevated transportation and logistics costs, and higher recharge costs, according to the TCC Plc board chairman, Mr Paul Makanza. The 9.7 percent increase in revenue was driven by volume growth of 11 percent.

“The company delivered solid pre-tax profits of Sh99.1 billion and profit after tax of Sh66.2 billion,” he said.

In 2023, the company also expanded its product portfolio with the launch of a new brand in July.

In 2023, TCC Plc was recognised as the employer of choice for the sixth consecutive year by the Global Top Employer Institute. The company also managed to maintain its commitment to sustainability, as evidenced by a 3.1 percent reduction in greenhouse gas emissions and a 41.2 percent decrease in waste generation. Looking ahead, Mr Makanza said, TCC Plc’s business outlook remains bullish in 2024 despite prevailing global economic uncertainties, including geopolitical tensions.

His sentiments are based on the promising macroeconomic projections for Tanzania, with the World Bank projecting that the country’s GDP will expand by 5.6 percent while the Bank of Tanzania forecasts that inflation will remain low and stable, at around 3.2 percent.

According to TCC Plc’s Chief Executive Officer, Mr Takashi Araki, both the six billion cigarette stick sales in the domestic market and the 10 billion stick production are historical records. He said TCC’s operations were in line with its new purpose of “Creating Fulfilling Moments and a Better Future.”.

As such, throughout 2023, TCC Plc’s operations were anchored within the directions of enhancing brand strength, ensuring sustainable growth, and committing to the Environmental, Social and Governance (ESG) responsibilities. The company, which boasts a 62-year legacy in Tanzania, also managed to significantly reduce its environmental footprint, decreasing total energy consumption by 3.8 percent and water usage by 6.3 percent.

“Our waste management efforts led to recycling 71 percent of the total 242 tonnes of waste generated and upcycling 306 empty glue bins from the manufacturing process into trash bins for clean-up campaigns in Dar es Salaam and Zanzibar,” said Mr Araki.

In addition to a tax contribution of Sh325.9 billion in 2023, the company invested a total of Sh410.5 million in community development projects focusing on elderly youth and women’s economic empowerment, educational scholarships for elderly youths, environmental conservation, and support for people with disabilities, where 1,700 community members were positively impacted.