Dar es Salaam. Tanzania Breweries Limited (TBL) pre-tax profit increased by 85 per cent to Sh210 billion during 12 months, which ended in December last year, from Sh107 billion recorded during the first nine months of 2017.
According to the company announcement, the increase of pre-tax profit was a result of increased revenue by 23 per cent to Sh1 trillion in 2018 from Sh877 billion recorded during nine months of the previous year.
The increase in revenue also improved the company gross profit, which went up by 32 per cent to Sh409 billion during 12 months that ended in December last year from Sh309 billion recorded during the nine months that ended in December 2017.
In his statement on the announcement, the company managing director, Mr Roberto Jarrin, commented that on the basis of 12 months comparison, TBL experienced a challenging year that saw revenue decline by 3 per cent impacted by heavy rains in the second quarter, which affected sales and distribution.
“Also affecting our top line growth was the scale down of our Dar brewing business,” Mr Jarrin said.
He said despite the reduction of revenue, the company continues to drive the strategy of more affordable brands and packs to enable more consumers to switch out of informal sector. He further said operating profit declined by 11 per cent as a result of lower volumes and increase in costs of sale, driven by higher raw material prices.
In addition, the director said there was an increase in selling and distribution costs as a result of marketing initiatives related to the Fifa World Cup and the launch of Budweiser in Dar es Salaam.
The financial statement has shown that dividend per share slowed by nine per cent to Sh700 during 12 months ended in December last year from Sh770 recorded during nine months ended in December 2017.