News – 2012
Tanzania Breweries Limited Interim Results for the six months ended 30 September 2012
30 September 2012
|
2012 Tshs´ m |
2011 Tshs´ m |
% Change |
|
|---|---|---|---|
| Total Revenue | 440,009 | 386,546 | 14 |
| Gross Profit | 216,028 | 188,855 | 14 |
| Operating profit | 122,926 | 109,599 | 12 |
| Earnings per share | 256 | 238 | 8 |
Company Profile
Tanzania Breweries Limited (TBL), a subsidiary of SABMiller. TBL manufactures sells and distributes clear beer, alcoholic fruit beverages and non-alcoholic beverages within Tanzania. TBL has controlling interest in Tanzania Distilleries Limited. TBL’s most popular clear beer brands include Safari Lager, Kilimanjaro Premium Lager, Ndovu Special Malt, Castle Lager and Castle Lite. Other prominent brands associated with the TBL group are Konyagi Gin, Amarula Cream and Redd’s Premium Cold. The TBL group is listed on the Dar es Salaam Stock Exchange, employs about 1,600 people and is represented throughout the country with four clear beer breweries, a distillery, a malting facility and 5 distribution depots.TBL as a major player in the beverage sector is committed to the export of its products to niche and neighboring markets under the East Africa common market trading arrangement.
Overview of SABMiller
SABMiller is one of the world’s largest brewers with brewing interest or distribution agreements in over 60 countries across 6 continents. The group brands include premium international brands such as Miller Genuine Draft, Peroni Nastro Azzurro, Grolsch and Pilsner Urquell, as well as an exceptional range of market leading local brands. SABMiller is listed on the London and Johannesburg stock exchanges.
Financial Review
The Tanzania Breweries Limited Group of Companies (TBL) has delivered a satisfactory set of results despite challenging market conditions for the six month period ended 30th September 2012.
Overall volumes for the half year declined compared to the same period prior year. The decline was largely driven by lower consumption following the 25% excise duty increase on beer which was passed onto the consumer in July 2012. The majority of our brands were negatively affected by this significant excise increase and resultant increased selling prices. Tanzania Distilleries Limited however continues to perform well with strong volume and earnings growth recorded during the year.
Sales revenue growth of 14% over last year was driven by improved product mix and inflationary price increases. However, as a result of the above-inflationary increase in excise rates and resultant decline in volumes, Excise and VAT revenues to the Government are likely to be lower than that planned for the year, which reflects the price elasticity impact on consumers.
Trading profit ended the period 12% ahead of prior year. The Tanzanian Shilling remained stable over the period, which benefitted the cost of imported production materials, while the rise in electricity and oil prices as well as unreliable power supply has adversely affected fuel and energy costs.
Total cash generated from operations amounted to Tsh 121 billion, of which Tsh 28 billion was utilised to pay corporate tax, while the remaining Tsh 93 billion went towards funding interest and capital expenditure and paying the final dividend which was declared at the end of financial year 31st March 2012.
The growth in earnings was achieved in a challenging environment and largely as a result of improved cost management and efficiencies. I would like to thank the Board, management and employees for their efforts and continued support, as well as our customers, consumers and all stakeholders for their loyalty.
R. M. Goetzsche
Managing Director
Group Profit & Loss Accounts for the six months ended 30 September 2012
| 2012 | 2011 | % | |
|---|---|---|---|
| Tsh M | Tsh M | Change | |
| Revenue | 440,009 | 386,546 | 14 |
| Cost of sales | (223,981) | (197,691) | |
| Gross profit | 216,028 | 188,855 | 14 |
| Selling and distribution costs | (64,499) | (55,699) | |
| Administrative expenses | (29,293) | (25,454) | |
| Other income | 690 | 1,897 | |
| Operating profit | 122,926 | 109,599 | 12 |
| Finance costs | (7,708) | (2,457) | |
| Profit before income tax | 115,218 | 107,142 | 8 |
| Income tax expense | (34,845) | (32,443) | |
| Profit for the period | 80,373 | 74,699 | 8 |
| Attributable to : | |||
| Equity holders of the parent | 75,505 | 70,177 | |
| Non-controlling interests | 4,868 | 4,522 | |
| 80,373 | 74,699 | 8 | |
| Total number of shares in issue | 294,928,463 | 294,928,463 | |
| Less: Treasury shares | (5,898,596) | - | |
| Weighted ave.number of shares in issue | 289,029,867 | 294,928,463 | |
| Basic earnings per share (Tsh) | 261 | 238 | 9.7 |
| Diluted earnings per share (Tsh) | 256 | 238 | 7.6 |
Balance sheet as at 30 September
| 2012 | 2011 | % | |
|---|---|---|---|
| Tsh M | Tsh M | Change | |
| ASSETS | |||
| Non current assets | |||
| Intangible assets | 40,596 | 41,005 | |
| Property plant and equipment | 366,191 | 306,602 | |
| Investments | 88 | 88 | |
| Other receivables | - | 16 | |
| 406,875 | 347,711 | 17 | |
| Current assets | |||
| Inventories | 130,841 | 92,131 | |
| Accounts receivable | 83,577 | 24,843 | |
| Bank and cash balances | 90,734 | 108,134 | |
| 305,152 | 225,108 | ||
| Total assets | 712,027 | 572,819 | 24 |
| EQUITY | |||
| Share capital | 29,493 | 29,493 | |
| Share premium | 45,346 | 45,346 | |
| Other reserves | (12,209) | - | |
| Retained earnings | 411,915 | 306,856 | |
| 474,545 | 381,695 | ||
| Non-controlling interests | 10,938 | 6,601 | |
| Total equity | 485,483 | 388,296 | 25 |
| Non-current liabilities | |||
| Borrowings | 59,600 | 65,208 | |
| Deferred income tax | 34,262 | 29,371 | |
| Provisions | 448 | 180 | |
| 94,310 | 94,759 | ||
| Current liabilities | |||
| Trade and Other payables | 112,465 | 70,738 | |
| Income tax payable | 11,506 | 8,777 | |
| Borrowings | 6,561 | 8,422 | |
| Dividends payable | 1,702 | 1,827 | |
| 132,234 | 89,764 | 47 | |
| Total equity and liabilities | 712,027 | 572,819 | 24 |
Group Cash Flow Statements for the six months ended 30 September 2012
| 2012 | 2011 | % | |
|---|---|---|---|
| Tsh M | Tsh M | Change | |
| Cash generated from operating activities | |||
| Operating profit | 122,926 | 109,599 | 12 |
| Adjusted for: | |||
| Depreciation & amortisation | 15,661 | 12,973 | |
| Loss (Profit) on sale of property plant and equipment | (52) | 249 | |
| Other non-cash items | 1,465 | 1,715 | |
| 140,000 | 124,536 | 12 | |
| Changes in working capital | (18,842) | (10,647) | |
| Cash generated from operations | 121,158 | 113,889 | 6 |
| Interest paid | (7,802) | (2,297) | |
| Taxation paid | (28,340) | (29,789) | |
| Net cash inflow from operating activities | 85,016 | 81,803 | 4 |
| Cash flows from investing activities | |||
| Purchase of property plant and equipment | (27,742) | (25,107) | |
| Proceeds from disposals | 1,288 | 12,830 | |
| Net cash used in investing activities | (26,454) | (12,277) | |
| Cash flows from financing activities | |||
| Dividends paid to group shareholders | (33,942) | - | |
| Dividends paid to minority shareholders | (24,881) | (3,680) | |
| (Decrease)/Increase in non-group indebtedness | (5,171) | 17 | |
| (Decrease)/Increase in intergroup indebtedness | (4,039) | ||
| Net cash used in financing activities | (63,994) | (7,702) | |
| Net increase/(decrease) in cash and cash equivalents | (5,432) | 61,824 | |
| Cash and cash equivalents at 1 April | 92,902 | 37,888 | |
| Cash and cash equivalents at 30 September | 87,470 | 99,712 | -12 |
Group Statement of Changes In Equity for the period ending 30 September 2012
| GROUP | Share capital | Share premium | Other reserves | Retained earnings | Minority Interest | Total |
|---|---|---|---|---|---|---|
| Tsh. M | Tsh. M | Tsh. M | Tsh. M | Tsh. M | Tsh. M | |
| Balance at 1 April 2011 | 29,493 | 45,346 | - | 236,679 | 5,759 | 317,277 |
| Net profit after tax | - | - | - | 70,177 | 4,522 | 74,699 |
| Interim dividend | - | - | - | - | (3,680) | (3,680) |
| Balance at 30 September 2011 | 29,493 | 45,346 | - | 306,856 | 6,601 | 388,296 |
| Balance at 1 April 2012 | 29,493 | 45,346 | (12,209) | 336,410 | 6,070 | 405,110 |
| Net profit after tax | - | - | - | 75,505 | 4,868 | 80,373 |
| Balance at 30 September 2012 | 29,493 | 45,346 | (12,209) | 411,915 | 10,938 | 485,483 |