Tanzania Breweries Limited (TBL.tz) Q32022 Interim Report
I am pleased to announce the business results for the third quarter ended 30 September 2022. Revenue for the quarter increased by 15% with significant growth in beer and slightly in spirits, with substantial contribution delivered consistently quarter on quarter from core and core plus segment of the beer business, resulting in double digit growth.
Operating profit increased by 18% contributed by volume performance and efficiencies in operating costs. Selling and distribution costs increased by 10% driven by volume performance and increase in fuel prices. Sales and marketing costs increased during the period driven by increased marketing and brand activities compared to the same period last year. The increase in administration and other expenses was largely due to increase of variable compensation and timing of expenses. The impact of volume performance and operating costs resulted in an improvement in the operating margin by 0.5% to 24.8% compared to 24.3% last year.
Profit after tax for the quarter decreased by 4% compared to last year driven by the impact of prior year tax adjustments on last year results.
A total of TShs 25,556 million was invested in capital expenditure over the period compared to TShs 24,882 million in 2021 with a focus on capacity to support the volume growth. Cash generated from operations was TShs 119,391 million, of which TShs 18,680 million was utilized to pay corporate income tax, TShs 25,556 milion to pay for capital expenditure and the remaining funds were retained for future activities.
I would like to thank the Board, Management and employees for their engagement and commitment in delivering the results and most importantly our customers, consumers and partners for their continued support and trust in our brands.
Jose D Moran
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