Performance for the year
Despite a tough domestic economic environment and highly competitive export markets, gross turnover increased from
TZS 445.6 billion in 2013 to TZS 461.7 billion in 2014 or 3.6% up on prior year. However, the 25% excise tax increase in July 2014 drove up prices of our products to unaffordable levels, fuelled further consumer down-trading, increased illicit trade and negatively impacted profitability. The company recorded a profit before tax of TZS 98.3 billion in 2014 compared to TZS 112.1 billion in 2013, equivalent to a 12% decrease over the previous year. Net profit decreased by 12% to TZS 68.6 billion in 2014 from TZS 78.1 billion in 2013.
The company’s business fundamentals remained sound in 2014 with strong liquidity evidenced by cash and cash equivalent of TZS 55.2 billion (2013: TZS 41.8 billion). The Company has no external interest bearing debt. All operations are funded through operating cash flows. During 2014 an additional TZS 9.5 billion (2013: TZS 20.3 billion) was invested in product quality, production capacity and sales distribution infrastructure. Investment in net working capital excluding cash resources of TZS 42.4 billion was TZS 9.8 billion down on prior year (2013: TZS 52.2 billion) as a result of resource optimization initiatives in 2014.
Tax compliance and rewards
The company was fully tax compliant in 2014. The company was recognized and awarded several certificates of compliance by the Tanzanian Revenue Authority (TRA) as 3rd overall winner of the Most Compliant Corporate Taxpayer at the national level at the 8th Taxpayer’s Day held on 21st November 2014.
During the year, the directors declared for 2013, a final ordinary gross dividend of TZS 20 billion or TZS 200 per share (2013:TZS 20 billion or TZS 200 per share) and a special gross dividend of TZS 25 billion or TZS 250 per share (2013: TZS 25 billion or TZS 250 per share). Later in the year, the Directors declared for 2014, an interim ordinary gross dividend of TZS 25 billion or TZS 250 per share, which was paid in November 2014 (2013: TZS 30 billion or TZS 300 per share).
Further details can be obtained through the following link