Tanzania Cigarette Company

Tanzania Cigarette Company Ltd. ("TCC"; DSE: TCC) is a tobacco company operating in Tanzania. The company started operations in 1961 as the East African Tobacco. Years later the government bought a large stake in the company and nationalized the company during the Ujamaa movement in 1975.[2][3]

Tanzania Cigarette Public Limited Company
TypePublic limited company
DSE: TCC
ISINTZ1996100032
IndustryTobacco
Founded1961 (1961)
HeadquartersDar es salaam, Tanzania
Area served
Tanzania and Neighboring countries
Key people
Mr. Takashi Araki
(Chairman & CEO)
ProductsCigarettes
RevenueIncrease TSh 499.5 billion (2016)
Decrease TSh 95.3 billion (2016)
Increase TSh 68.7 billion (2016)
Number of employees
445+[1]
ParentJapan Tobacco International
SubsidiariesTCC (Kenya) Ltd.
WebsiteTCC PLC Profile

TCC has been listed on the Dar es Salaam Stock Exchange since 16 November 2000. 75% of the company is owned by Japan Tobacco International.[4]

History

Incorporation

The Company was established as East African Tobacco in 1961.[3] The factory was officially opened by Mwalimu Julius K. Nyerere on December 4, 1961.[5] The Company now British American Tobacco (BAT) operated the company post-independence. In 1967, the government of Tanzania acquired a 60% stake in the company. During the socialist movement in Tanzania, in 1975 the government acquired the renaming 40% of the stake from the company and becomes the sole owner of the company. The company is renamed to Tanzania Cigarette Company ltd.[5]

Privatization

After years of poor operation and management, the government sells 51% of its stake in the company to RJ Reynolds in 1995. As part of its purchase of some of the assets of RJ Reynolds in 1999, Japan Tobacco Inc. (JT) acquired a 51% interest in TCC. In September 2000, JT purchased an additional 24% of the shares through its international tobacco division, Japan Tobacco International (JTI), increasing its holdings to 75% of the shares.[3][6]

Public offering

Months after the acquisition of TCC by Japan Tobacco International, TCC was listed on the Dar Brouse with JTI still holding a 75% majority stake.

Corporate affairs

TCC is the only producer of cigarettes in the country. In 2011 TCC brands conquer 90% of the Tanzanian market, while 5% is controlled by British American Tobacco whose factory is in neighboring Kenya, and 5% by foreign brands.[7]

Ownership

Tanzania Cigarette Company (TCC:DSE) is traded on the Stock Exchange since November 2000. Japan Tobacco International has held majority stake of 75% since September 2000.[8]
As of December 2016 the stock of TCC is owned by the following institutions:[5]

Shareholder Interest
JT International Holding B.V. 075.0%
Kingsway Fund 09.3%
General Public 07.0%
Parastatal Pension Fund (PPF) 03.0%
Government of Tanzania 02.2%
Public Service Pension Fund (PSPF) 01.0%
Others 02.5%

Below are the recent business trends for TCC. TCC financial year ends on 31 December.

2010 2011 2012 2013 2014 2015 2016
Gross Turnover (TSh million) 321,777 376,778 422,594 445,633 461,720 496,675 499,457
Net Sales (TSh million) 211,008 250,344 281,419 290,601 283,910 300,550 300,962
Net Income (TSh million) 60,200 70,942 85,941 78,058 68,600 65,711 68,669
Debt Ratio (TL/TA) 27% 27% 27% 27% 28% 24% 27%
Dividend per share (TSh) 300/= 600/= 750/= 750/= 650/= 600/= 600/=
Notes/sources [5] [5] [5] [5][9] [5][10] [11] [5][10]

Brands
  • Embassy - Registered in January, 1948 in Tanganyika in the name of Brit-Am Tobacco (Tanzania) Limited.
  • Sweet Menthol (SM) - Launched in 1961 during incorporation.
  • Portsman - Formerly Sportsman
  • Club - Launched in 1998
  • Safari - Launched in 2005
  • Camel - Originally the American brand introduced in Tanzania by TCC.
  • Iceberg - Premium Menthol cigarette launched in 2008

See also

References
  1. "Tanzania Cigarette Company Limited Summary". Credit Risk Monitor. Retrieved 23 July 2015.
  2. Greenberger, Robert S. "New Leaders Replace 'Big Men' As Privatization Sweeps Africa". Wall Street Journal. ISSN 0099-9660. Retrieved 2016-02-14.
  3. "TCC – Tanzania Cigarette Company". JTI. Japan Tobacco International. Retrieved 23 July 2015.
  4. "Listed Companies". DSE-TZ. DSE. Archived from the original on 1 August 2015. Retrieved 23 July 2015.
  5. "TCC Annual Report 2014" (PDF). Dar-es-salaam Stock Exchange. Retrieved 23 July 2015.
  6. "Company Overview of Tanzania Cigarette Company Limited". Bloomberg Business. Bloomberg. Retrieved 23 July 2015.
  7. "Tanzania Tobacco Profile" (PDF). who.int. World Health Organization. Archived from the original (PDF) on October 29, 2013. Retrieved 23 July 2015.
  8. "Tanzania Cigarette Company Limited (Exchange: DES Ticker: TCC)". African Select. Retrieved 23 July 2015.
  9. "TANZANIA CIGARETTE COMPANY LTD REPORTS A 9.2% DECLINE IN PROFIT". Corporate Digest. 18 March 2013. Retrieved 23 July 2015.
  10. "Tanzania Cigarette Company Overview". WSJ Quotes. Wall Street Journal. Retrieved 23 July 2015.
  11. "TCC Annual Report 2016" (PDF). Dar es Salaam Stock Exchange.
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