Tanzania: Tanzania Breweries reports 3% drop in profits for 2019
Tanzania Breweries Ltd has announced a three per cent drop in profits for the period ending December 31, 2019, as it discontinued traditional beer business run by its affiliate Darbrew Ltd, The East African reported on April 14.
According to the Dar es Salaam Stock Exchange listed company's 2019 end-year results released this week, revenues decreased by five per cent with a significant decline being recorded in affordable brand segment.
Darbrew Ltd manufactures affordable drinks like Chibuku once-high popularity of which appears to have declined sharply, leading to TBL's decision to scale down production.
According to TBL managing director Philip Redman, the company's operating profit went up by five per cent as a result of increased productivity, lower brewing and packaging raw material costs, logistical efficiencies and lower overhead costs.
“As a result, our operating margin was 21 per cent which increased by five per cent from prior year. The group continues to drive the strategy of more affordable packs to enable more consumers to switch out of the informal sector,” Mr Redman said.
TBL's total capital expenditure investment for the year amounted to Tsh64.178 billion ($27.9 million) compared with Tsh111.966 billion ($48.7 million) in 2018.
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