TANZANIA – Tanzania Breweries Limited (TBL), a subsidiary of AB InBev, has registered 6% rise in full year revenue in the period ended December 2022, from Tsh. 961.8 billion (US$414m) to Tsh.1.01 trillion (US$434m).
The rise in top line earnings contributed 68% jump in profit to Tsh. 149.6 billion (US$64m) from Tsh.89.08 billion (US$38m), reports Daily News Tanzania.
According to the beer maker, the stellar performance was triggered by growth in both beer and spirits sales alongside stringent cost saving measures of both operating and administration costs.
This contributed to improvements in operating margin by 2% to 19% compared to 17% the previous corresponding period.
However, the company’s sales and marketing costs rose by 14%, driven by the increase in promotion activities to drive growth, compared to the same period last year.
During the period under review, cash generated from TBL’s operations was Tsh. 272.2 billion (US$117m), of which Tsh. 62.8 billion (US$27m) was utilized to pay corporate tax, with Tsh. 50.8 billion (US$21.8m) to pay capital expenditure, Tsh. 84.1 billion (US$36m) used in financing activities including payment of dividends, Tsh. 75.5 billion (US$32m) and the remaining funds were retained for future activities.
The company is confident that its strong portfolio of brands and renovated commercial strategy will deliver consistent growth and long-term value creation, even in challenging years such as the one faced in 2021.
In the new financial year, the maker of Kilimanjaro Lager will focus on strengthening partnership along the value chain with farmer, suppliers, distributors, among others and keep building a better and stronger business.
The company is also focused on sustainably running its operations and supporting neighbouring communities as it has disbursed a total of US$600,000 to finance the implementation of a bankable nature solution project.
The three-year project, which is implemented by Wami/Ruvu Basin Water Board (WRBWB) in cooperation with the World Wild Fund (WWF), focuses on improving water quality and quantity supplied to Dar es Salaam.
The initiative is also geared to protecting watershed biodiversity in the city and satellite towns in the Msimbazi, Mzinga and Ruvu rivers sub-catchments.
The parties are targeting to collect some Tsh5 billion (US$2.1m) to cover the entire project from March 2022 throughout to December 2025 from other private industry players.
The project setup is aligned with TBL’s overall principles of integrated water resource management approach to ensure the coordinated development of water resources with a view to optimising social and economic welfare without compromising their sustainability.
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