Download the Tanzania Breweries Ltd 2010 Annual ... - SABMiller

Chairman’s Statement
Tanzania Breweries Limited group of Companies, despite challenges
in the market place delivered yet another excellent performance
in the financial year ending on the 31st March 2010. Sales revenue
registered a 14% growth with corresponding operating profit of Tshs.
146 billion due to share gains in a declining market.
The Tanzania beer industry declined by 6% during the year as a direct
impact of softer consumer spending and reduced economic growth.
TBL’s volume ended 4% below prior year, while Group volume output
declined by 3% to 2.85 million hectolitres with Wine and Spirits
volume growing by 28% over the year. TBL maintained its proud
record of annual growth in profit since the Company listed on the
Dar es Salaam Stock Exchange in 1998. Earnings per share increased
to Tshs. 297 per share, an improvement of 13% over the last year.
Dividend per share for the year was maintained at Tshs. 150 due to
capital expenditure on an expansion and facility upgrade programme
which required internal funding to supplement external loans.
TBL continues to make a significant contribution to Government
revenues by way of corporate, excise and value added taxes. Payments
to Government were Tshs 188 billion for the year.
Delivery on time of additional capacity and capability including a new
brewery in Mbeya and additional packaging line and rehabilitation of
the third packaging line at Dar es Salaam Plant was achieved giving the
Company the capacity it requires. A total of Tshs. 114.2 billion was
invested in fixed assets compared to Tshs.75.5 billion in prior year.
These achievements are a testimony to the successful joint venture
which was consummated when SABMiller, one of the largest brewers
in the world, the Tanzanian Government and other shareholders
invested in TBL. The joint venture has since benefited all shareholders,
the national economy and the consumers of TBL products, as well
as the committed and skilled labour force which makes TBL a truly
world class Company.
As a corporate citizen of the nation, TBL has continued to make
contributions to community projects and the emphasis in the past
year has been on educational, environmental, job creation and health
projects. In the period ahead, TBL has decided to depart from the
previous trend of supporting a wide range of projects and instead
emphasis now is to focus on a few key themes in support of our
Corporate Social Investment. For this year we have : There is no
water there is no life”, (Hakuna Maji, Hakuna Uhai).
In order for TBL to grow, the country’s infrastructuremust be
continuously improved and upgraded. Transport, water and electricity
supplies require sustained improvement and upgrading. TBL shall cooperate
with the Government in pursuit of this objective.
I remain optimistic about what the future holds, not only for Tanzania
Breweries Limited but also for the national economy. I am confident
that TBL will continue its proud record of positive growth in earnings
and dividends and its contribution to the economy of Tanzania.
These achievements have been attained because of the commitment,
dedication and hard work by the management and staff of TBL Group.
I would like to thank them all for their achievements.
I would like to thank the directors of TBL for their wise counsel and
dedicated service during the past year. The good performance of the
Group in the year under review is a testimony to their service. I look
forward to their continued exemplary contribution to TBL, as well as
towards the development of Tanzania, in the years to come.
Cleopa David Msuya
Chairman
Looking ahead, TBL is committed to focusing on the following
strategic objectives:
(i) To provide world class quality brands, quality of products and
service to the consumer at affordable prices.
(ii) To achieve the next year target volumes and turnover by
expanding market share through competitive marketing activities
and opening new market with the commissioning of Mbeya
Brewery in the south west and the completion of the all weather
Dar es Salaam – Mtwara Road which opens up new markets
formerly not reachable in Mtwara and Lindi regions.
(iii) To continue with efforts to integrate TBL Group activities into
the national economy. Specifically we shall expand the use of
local raw materials. SAIDIANA Project launched last year to
develop barley for brewing shall be expanded and consolidated
by recruiting more small, medium and large scale farmers. Parallel
to this objective sorghum cultivation will be promoted to supply
inputs into a special local beer brand.
(iv) To promote exports of the selected TBL brands to neighbouring
and other niche markets.
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