Tanzania Breweries Limited (TBL) has increased the amount it will pay in dividends for period ended March by 50 per cent even though its profits after tax for the full year grew marginally.
The company, which is a subsidiary of United Kingdom based global brewer SABMiller, has said that it pay a total dividend of Tsh300 ($0.19) for the full year ended March 2013 compared to Tsh200 ($0.12) paid for the full year ended March 2012.
TBL posted Tsh177.12 billion ($109.3 million) profit after tax during the twelve month period, a six per cent increase when compared to the Tsh166.41 billion ($102.7 million) posted over the twelve month period ended March 2012.
“The Board approved a total dividend for the year of Tsh300 ($0.19) per share, which was 50 per cent higher than the dividend declared last year. The dividend has been paid by way of a first and second interim dividend of Tsh150,” said TBL in a statement accompanying its full year financial results.
TBL’s shares at the Dar es Salaam Stock Exchange (DSE) closed at Tsh3,280 ($2.04) on Monday, having gained 17.14 per cent from Tsh2,800 ($1.73), its opening price at the start of this year.
As at the end of March last year, SABMiller owned a 169.7 million shares or 57.54 per cent of the brewer, making it the single largest shareholder in TBL, followed by Unit Trust of Tanzania and the Parastatal Pension Fund which had 13.23 million and 12.87 million or a 4.49 per cent and 4.23 per cent stake respectively.
In March this year TBL, acquired a 60 per cent interest in Darbrew Ltd, a traditional beer company in Tanzania for $6 million in cash, in a move that it expects will help it grow revenues going forward.
The brewer said that overall volumes for the year declined compared to the prior year and this was blamed on by lower consumption following a 25 per cent excise duty increase on beer in July 2012 which was passed onto the consumer.
“The majority of our brands were negatively affected by this significant increase in excise and resultant selling prices,” said TBL adding that Tanzania Distilleries Limited, another of its subsidiaries continued to perform well with good volume and earnings growth recorded during the year.
Total revenues however rose 11 per cent even with the reduced volume to Tsh892.01 billion ($550.6 million) for the period ended March 2013 from Tsh800.94 billion ($494.41 million) posted for the period ended March 2012.