Tanzania: TBL profit plunges by 41pc as Covid-19 impact hits revenue

Tanzania Breweries saw its profit drop by 41 percent after the company’s revenue were hit hard by Covid-19 that disrupted consumption and economic activities around the world.

Net profit of the company listed on the Dar es Salaam Stock Exchange dropped to Sh89 billion in 2020, compared with the Sh150.21 billion recorded during the previous year, according to a statement posted on the DSE website.

TBL Group managing director Mr Philip Redman stated that the company’s revenues were adversely hit by the pandemic as the sales volume of its products dropped.

“The group’s revenue decreased by 6.2 percent impacted by the global Covid-19 pandemic. Beer revenue and volumes have been mostly affected during April and May, whilst spirits have achieved single digit growth in the period,” he stated. The company’s revenue in 2020 was Sh961.88 billion lower than the Sh1.02 trillion generated in 2019.

During April and May in 2020, Tanzania was in a distress, as the first Covid-19 patient surfaced in March.

After confirming of that first case, schools and universities were closed and the government banned all public gatherings - except prayer activities - as part of its measures to contain the viral disease.

Health restrictions and fear of the pandemic also resulted in fewer people in bars, restaurants and hotels.

However, the TBL chief said signs of recovery were seen in the second-half of last year, raising hopes that performance would improve.

“With Covid-19 measures easing in the country, signs of recovery were observed in the second half of the year,” he said.

Mr Redman also said the Group generated Sh253.45 billion from its operations, Sh82.19 billion of which was used to pay corporate income tax, and Sh39.71 billion to pay capital expenditure. Sh7.38 billion was used in financing activities and the remaining funds were retained for future activities.

TBL - whose share price stood at Sh10,900 apiece yesterday afternoon - paid Sh52.96 billion as dividend to its shareholders in 2020.