STIFF COMPETITION HITS TANGA CEMENT PROFITS

TCCL Board Chairman, Lawrence Masha

Dar es Salaam. Group profit of Tanga Cement Company Ltd (TCCL) declined by about 18 per cent in the first six months ending 30th June 2014 as the firm reports increased competition and influx of imported cement.

The cement producer which trades as Simba Cement registered a net profit of Sh8.6 billion in the first half of 2014 compared to Sh10.5 billion recorded in the same period last year.

The group’s board chairperson Lawrence Masha said in a statement that the increased competition has not only placed downward pressure on cement prices but also made achieving the budgeted sales volume more challenging.

“Despite the challenges presented by the prevailing market conditions that have resulted in a small decline in sales volumes, the group managed to increase overall profitability through significant cost optimization over the past 12 months,” said Mr Masha.

The growth in domestic and export cement markets and TCCL’s reputation as a supplier of quality cement has however, enabled the group to be well on track to achieve its budgeted sales volume for the full year, he said.

The Citizen