TBL MANAGING DIRECTOR'S STATEMENT ON THE COMPANY'S FINANCIAL RESULTS (MARCH, 2015)

Company Profile
Tanzania Breweries Limited (TBL), a subsidiary of SABMiller, manufactures, sells and distributes clear beer, alcoholic fruit beverages and non-alcoholic beverages within Tanzania. 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.TBL has controlling interest in Tanzania Distilleries
Limited and Darbrew 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 Redds Premium Cold. The TBL group is listed onthe Dar es Salaam Stock Exchange, employs 1,868 people and is represented throughout the country with four clear beer breweries, a distillery, an opaque business, a malting facility and 10 distribution depots.

Overview of SABMiller
SABMiller is one of the world’s largest brewers with brewing interest or distribution agreements in over 60 countries across six continents. The group brands include premium international brands such as Miller Genuine Draft, Peroni Nastro Azzurro, Grolsch, Fosters 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 another sound set of results despite extremely challenging market conditions for the year ended 31st March 2015. Annual lager volumes were 6.5% down on prior year mainly as a result of above-inflation price adjustment following the 20% increase in excise. This was further exacerbated by challenging economic conditions especially in the Northwest and Far South regions. Wines and Spirits volumes were 36% above prior year with outstanding performance from brands like Konyagi, Vladmir and Zanzi Cream. Volumes for opaque beer were in line with prior year.

Sales revenue growth of 10% over prior was driven by the favourable mix and the excise driven price increase.

Operating profit ended the period 7% ahead of prior year mainly due to production efficiencies as well as cost savings. The Tanzanian Shilling has come under pressure and depreciated by 14% against the US dollar year to date. This continued to put additional pressure on the cost of imported production materials.

Total cash generated from operations amounted to Tsh 365 billion, of which Tsh 95 billion wasutilised to pay corporate tax, while the remaining amount funded capital expenditure, repayment of bank borrowings, interest expenses. Dividends of Tsh 152 billion were paid to shareholders. The growth in earnings was achieved largely as a result of favourable mix, improved efficiencies as well as focused cost management whilst operating in an extremely challenging environment. 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.

Roberto Jarrin
Managing Director
 
TBL financial results for the year ending March -2015 can be obtained through the link below

http://dse.co.tz/sites/default/files/dsefiles/TBL%20F15%20Financial%20Results%20Press%20Release.pdf