Tanga Cement Co. (SIMBA.tz) had a pre-tax loss of TZS 16.8 billion in Q3 2023, mainly due to higher interest expenses and forex losses.

Published On: December 18, 2023Company: Tanga Cement Company Plc (SIMBA.tz)
What were the strategies that contributed to the improvement of Tanga Cement Company's performance for Q3 2023?
Tanga Cement Company's improved performance for the Q3 2023 was due to various strategies such as the implementation of high health and safety protocols, a commitment to producing high-quality cement and clinker and significant contribution towards the sustainable growth and development of Tanzania. Furthermore, efficiency through marginal price adjustments and effective cost containment strategies greatly helped the company's financial performance.

Key Insights

  • Tanga Cement Company Plc reports a favourable improvement in their operational performance for the quarter ended 30th September 2023, despite challenges such as escalating competitive dynamics, inadequate electricity and scarcity of major foreign currencies.
  • The company attributes their performance to high standards of health and safety protocols, high-quality cement and clinker, and their contribution towards the sustainable growth and development of Tanzania.
  • The Tanzanian construction industry’s demand for cement, supported by a 5.7% GDP growth in 2023, has been identified as a primary driver for the Group’s growth. The group is optimistic about the Government’s Development Vision 2025 program’s positive impact on infrastructure development.
  • For Q3 2023, the company reported an increased revenue of 12%, gross profit of 38% and EBITDA of 57%, despite power outages impacting production. This improvement is due to the company’s commitment to efficiency through marginal price adjustments and effective cost-containment strategies.
  • The Group reported an overall loss before tax of TZS 16.8 billion in Q3 2023 due to higher interest expenses on term loans and foreign exchange losses.
  • The Group did not declare an interim dividend for 2023 to maintain cash resources due to global economic uncertainties and high fuel prices.
  • Scancem International DA has proposed to acquire 68.33% of the shares in Tanga Cement PLC, this acquisition will strengthen Heidelberg Materials’ presence in the cement industry in Tanzania.

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About Tanga Cement Company Plc (SIMBA.tz)

Tanga Cement Company Plc manufactures, distributes and sells cement and clinker products to the building, construction, roadworks and mining segment in Tanzania. The company produces Portland limestone cement with limestone extenders used for structural and non-structural cast constructions; reinforced concrete for civil and industrial works; and fillings, coatings, screeds and mortars as well as concrete for mining infrastructure and shafts. The company markets its cement products under the Simba Cement Brand. Tanga Cement Company is a subsidiary of AfriSam (Mauritius) Investment Holdings Limited; with production facilities in the city of Tanga in Pongwe and its head office in Dar es Salaam. Tanga Cement Company Plc is listed on the Dar es Salaam Stock Exchange

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