TBL Q2 profit up 42pc on strong beer, spirit sales

TANZANIA Breweries Limited (TBL) has reported 42 per cent growth in net profit in the second quarter of this year boosted by significant increases in beer and spirit sales.

The oldest and largest brewing company in the country which is a local subsidiary of the world’s largest brewing company AB InBev, made 39.5bn/- profit after tax in the quarter ending in June up from 27.7bn/- obtained from a similar period last year.

According to financial statement for the second quarter of this year, the maker of Safari Lager, earned 301bn/- in revenue up from 260bn/- made in similar period last year, equivalent to 16 per cent increase.

The revenue increase has been attributed to growth across the beer and spirit categories driven by strong performance.

Shareholders of the Dar es Salaam Stock Exchange (DSE) listed brewing firm will be making more money with 43 per cent increase in basic earnings per share to 123/- in the second quarter of this year up from 86/- of the similar period last year.

Operating profit increased by 48 per cent driven by strong volume performance and an improvement in brand sales mix.

Selling and distribution costs were 27.8bn/- slightly lower than the second quarter of the previous year which reached 28.9bn/- due to what Managing Director, Jose Moran said “optimisation and efficiency in operations.”

Finance costs increased to 5.6bn/- from around 2.0bn/- in the second quarter last year due to the increase in foreign currencies exchange rate.

TBL has a controlling interest in Tanzania Distilleries Limited, Darbrew Limited and Kibo Breweries Limited.

It operates breweries in Dar es Salaam, Arusha, Mwanza and Mbeya, a distillery in Dar es Salaam and eight depots across the country.