TBL shares jump 15pc on dividend, half year profit announcement
Tuesday November 26 2013
Tanzania Breweries Limited (TBL). The brewers shares jumped 15 per cent during trading hours on Tuesday after the brewer announced that it will pay half of its six months net income in dividends. Photo/FILE
Tanzania Breweries Limited (TBL) shares jumped 15 per cent during trading hours on Tuesday after the brewer announced that it will pay half of its six months net income in dividends.
The Dar es Salaam Stock Exchange (DSE) listed firm on Tuesday morning reported a 7.9 per cent increase in profit after tax to Tsh86.75 billion ($53.8 million) in the six months ended September 2013 from Tsh80.37 billion ($43.7 million) in the six months ended September 2012.
TBL said that it will pay Tsh150 ($0.09) per share in an interim dividend, which amounts to Tsh43.35 billion ($26.9 million) which is 50 per cent of its profit after tax made for the period ended September.
Shareholders who will be on the register by December 19 will be eligible for the interim dividend, which will be paid on December 27.
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Its share at the DSE closed at Tsh7,360 ($4.57), a 15 per cent gain from Monday’s close of Tsh6,400 ($3.98).
The brewer’s shares have risen by more than two and a half times this year when compared to the opening price of Tsh2,800 ($1.78) on the first trading day of January.
TBL, which is majority owned by SABMiller, said that its profit was driven by a growth in sales and price increases on its beverages.
“Growth in earnings was achieved largely through increased sales volumes, improved efficiencies as well as focused cost management whilst operating in a challenging environment,” said Robin Goetzsche, managing director, TBL in a statement that accompanied the financial results.
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TBL said revenues rose by 9.12 per cent to Tsh480.12 billion ($298 million) in the six months ended September this year from Tsh440 billion ($239.3 million) in the six months ended September last year.
TBL’s competitor in the East African region, East African Breweries Limited, which is majority owned by Diageo saw its shares close at Ksh319 ($3.68) on Tuesday at the Nairobi Securities Exchange, a 20.38 per cent gain when compared to their opening price of Ksh265 ($3.08) at the beginning of this year.
Bralirwa’s shares, a Rwanda Stock Exchange brewer which is majority owned Dutch brewer Heineken, saw its shares close at Rwf848 ($1.27), a 34.60 per cent gain from Rwf630 ($0.22) its closing price at the end of last year.