TCC lifts dividend payout as profit rises by 17pc

DAR ES SALAAM: SHAREHOLDERS of Tanzania Cigarette Company (TCC) are set for a higher return after the Board proposed a final dividend payment of 650/- per share for the fiscal year ending December 2025.

Coupled with the interim ordinary dividend of 400/- per share paid to shareholders in October last year, this brings the total ordinary dividend for the year to 1,050/- per share.

TCC’s Chairman Mr Mohamed Chande Othman said the final dividend will be paid on or about May 26, this year with shares trading cum-dividend until May 6, this year.

“The final ordinary dividend payout is subject to shareholders’ approval at the annual general meeting scheduled for May this year,” said Mr Othman in a statement released yesterday.

The improved shareholder returns come on the back of solid financial results, with profit after tax rising to 135.4bn/- at the end of December last year from 115.3bn/- recorded in the previous year. In addition, the statement released showed revenue, profitability and cash flows all registered year-on-year improvements, reflecting a combination of market responsiveness and disciplined capital deployment.

By the end of December last year, the cigarette company, with total assets exceeding 396.4bn/-, reported a strong financial performance. Gross profit rose to 314.1 bn/-up from 280.1 bn/- in the same period the previous year.

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This growth was driven by increased revenue, which climbed to 507.2 bn/- compared to 454.6 bn/-recorded in December 2024. The strong earnings momentum also translated into higher total comprehensive income and growth in shareholders’ equity, reinforcing the company’s long-term financial stability and resilience.

The growth underscores the firm’s ability to generate sustainable earnings while maintaining a strong financial position.

“This performance is driven by consistent operational execution, robust gross profit growth, market responsiveness and effective cost management,” said Mr Othman.

Management noted that the results reflect the effectiveness of its strategic priorities, particularly its focus on operational excellence and efficiency gains across the business. Looking ahead, the company expressed optimism about its prospects this year despite an evolving operating environment.

TTC plans to sustain investment in operational capabilities and strategic initiatives aimed at supporting long-term growth, while leveraging opportunities emerging from broader economic developments.