TANZANIA Cigarette Company (TCC) has demonstrated robust performance by registering 26.2 per cent increase of net profit in the first half of this year, boosted by significant increase in sales volume.
The largest cigarette manufacturers in the country made a 39.6bn/- profit after tax in six months to June compared to 31.4bn/- obtained from a similar period last year.
According to the financial statement, the distributor of Sweet Menthol, Portsman, camel Winston, Embassy and Crescent and Star earned 181.4bn/- in revenue up from 168.1bn/- made in the similar period last year, equivalent to 7.9 per cent growth.
“The revenue increase has been attributed to growth volume and operational efficiency driven by strong performance,” said Mr Paul Makanza, TCC’s Chairman.
The cigarette manufacturer’s domestic and export volumes grew up by 5.8 and 38.9 per cent respectively, resulting in an overall volume climb by 16.3 per cent as it is shown in a statement.
Additionally, TCC with more than 184bn/- of all assets, has maintained a steadfast commitment to optimising operational efficiencies across all business areas, resulting in steady operational cost rise by 4.1 per cent in line with inflation.
Furthermore, the company’s operating cash flow climbed up by 27 per cent to 82.5bn/- from 64.9bn/- compared to a similar period last year.
“Our strong operating cash position reflects the company’s financial stability and ability to meet obligations, seize growth opportunities and navigate potential challenges ahead,” he said in a statement.
He also stressed that the company anticipated challenges ahead including the growth trade in illicit tobacco products, 20 per cent excise tax increase this fiscal year and potential constraints related to the availability of US dollars for imported raw materials.
“We remain steadfast in our commitment to the growth strategy. We will continue prioritising product innovation, building brand equity and operational excellence, enabling us to navigate these challenges and continue our upward trajectory effectively,” he added.