Tanzania Portland Cement Company Limited – which trades as Twiga – has reduced its dividend payout for this year in response to declining sales revenues in the wake of a growing competition among cement makers.
Shareholders will receive a dividend of Sh270 per share from the company’s 2016 proceeds, down from Sh306 which was given out last year from 2015 proceeds, its financial results show.
“Sales volume decreased by Sh10 billion due to pressure on sales…Operating profit dropped by 27 per cent to Sh53.8 billion….the board therefore proposes a dividend for 2016 of Sh270/share compared to Sh306 for the previous year,” Twiga Cement board chairman Alfonso Rodriguez told the company’s annual general meeting here yesterday.
Total revenue dropped from Sh277.2billion in 2015 from Sh287.9billion last year, largely due to pricing pressures, necessitated by increasing competition from new players, according to managing director Alfonso Velez.
The company is, however, optimistic that despite the complex business environment and competitive market, it will wither the storm and deliver better return for its shareholders.