Dar es
Salaam. Tanzania Portland Cement Company Limited – which trades as Twiga – has
reduced its dividend payout for this year in response to declining sales revenues
in the wake of a growing competition among cement makers.
Shareholders will receive a dividend
of Sh270 per share from the company’s 2016 proceeds, down from Sh306 which was
given out last year from 2015 proceeds, its financial results show.
“Sales volume decreased by Sh10
billion due to pressure on sales…Operating profit dropped by 27 per cent to
Sh53.8 billion…the board therefore proposes a dividend for 2016 of Sh270/share
compared to Sh306 for the previous year,” Twiga Cement board chairman Alfonso Rodriguez
told the company’s annual general meeting here yesterday.
Total revenue dropped from
Sh277.2billion in 2015 from Sh287.9billion last year, largely due to pricing
pressures, necessitated by increasing competition from new players, according
to managing director Alfonso Velez.
The company is, however, optimistic that
despite the complex business environment and competitive market, it will wither
the storm and deliver better return for its shareholders.
The Citizen
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