Tanzania: cement firms up dividends
Investors with Tanzania’s two listed cement manufacturing firms will benefit as the companies’ boards of directors propose increased dividend
payments from 2015 proceeds despite facing bitter competition from new markets entrants.
The Tanzania Portland Cement Company Limited (trading as Twiga) board has proposed a Sh306 per share, 14.6% increase from the dividend issued from the 2014 proceeds.
“The proposed dividend includes two interim amounts of Sh95/share and Sh111/share paid in October 2015 and February 2016 respectively… The last dividend of Sh100/share will be paid on/about June 30, 2016,” the company’s statement reads.
Twiga Cement has raised its sales by 22% in 2015 per cent compared to 2014 figures, thanks to increased capacity and production efficiency among other factors.
With increased sales, revenues grew by Sh44.6 billion to reach Sh288 billion in 2015, sending the net profit up by 3% compared to 2014 figures. It reached Sh56.2 billion in 2015.
However, Tanga Cement (trading as Simba) has already declared an interim dividend of Sh3.5 billion. This is a slight improvement from a dividend of Sh3.49 billion issued from its 2014 proceeds.
Tanga saw its net profit dropping to Sh8.2 billion – at group level – in 2015 from as high as Sh28.4 billion in 2014, largely due to increased competition which affected its sales volumes.