Tanga Cement PLC has warned shareholders to brace for substantial financial losses in the quarter ended 31 December 2023.
The company expects its operating loss before interest and tax to surge between 152% and 172% compared to the corresponding period in 2022, citing increased maintenance expenditure and lower sales volumes as contributing factors.
The Tanzanian cement manufacturer’s woes don’t end there. Tanga Cement PLC anticipates its loss before tax for the same period to escalate by a staggering 111% to 131% compared to the previous year.
The company attributes this alarming increase to higher interest expenses on term loans and foreign exchange losses resulting from the weakening Tanzanian shilling against the US dollar.
“The financial situation we find ourselves in is undoubtedly concerning,” said Hakan Gurdal, Chairman of the Board at Tanga Cement PLC. “We are taking immediate steps to address the underlying issues and ensure the long-term sustainability of our operations.”
The cautionary statement comes as a stern warning to investors, who have been advised to exercise caution when trading in the company’s securities until the full extent of the financial impact is known.
Tanga Cement PLC expects to publish its unaudited financial results for the quarter ended 31 December 2023 by no later than 30 June 2024.
