Tanzania Breweries Plc (TBL) has delivered another resilient quarter, ending September 30, 2025, with strong top-line growth, improved profitability, and sustained operational discipline despite rising finance costs and currency pressures. The brewer’s performance underscores the continued strength of its Core and Core+ beer portfolio, the resurgence of its spirits category, and efficient cost management across the business.
TBL’s revenue grew by 10% to TShs 467.1 billion in Q3 2024, rising from TShs 426.1 billion recorded in the same period last year. Management attributes this performance to strong volume growth within the Core and Core+ beer segments, double-digit expansion of the Konyagi brand in the spirits category, and a favourable product mix across the portfolio. The company continues to capitalize on the strength of its iconic brands, including Safari Lager, Kilimanjaro Premium Lager, Castle Lite, Balimi Extra Lager, and Grand Malt, while driving growth through ongoing product innovation and an extensive distribution network across Tanzania.
Gross profit increased by 13% to TShs 180.8 billion, driven by improved pricing, a more favorable portfolio mix, and operational efficiencies.
Operating profit saw an even sharper rise, increasing 17% to TShs 108.97 billion, and raising the operating margin to 23.3%, up from 21.8% last year, showing an improvement of 1.5 percentage points.
Management notes that strong top-line growth and “disciplined choices in revenue and cost management” were central to this margin expansion.
Despite solid operating performance, TBL incurred significantly higher finance costs, rising to TShs 14.1 billion in Q3 2025 from TShs 5.0 billion in Q3 2024, largely due to unfavourable currency translation effects. Consequently, profit before tax increased by 6% to TShs 98.9 billion, while profit for the period rose to TShs 69.4 billion from TShs 67.2 billion. However, earnings per share declined by 5% to TShs 204, down from 214. Overall, the elevated finance charges partially diluted shareholders’ returns despite the company’s underlying business strength.
TBL continued to invest in production and capacity enhancement during the quarter, deploying TShs 17.7 billion in capital expenditure, up from TShs 14.2 billion recorded in Q3 2024. The period was also marked by substantial cash outflows, including a corporate tax payment of TShs 36.5 billion and dividend payouts amounting to TShs 129.4 billion to company shareholders and TShs 81.9 billion to non-controlling interests.
Ugandan enterprises urged to explore regional oil and gas opportunitiesAs a result of these significant expenditures, the company’s cash and cash equivalents declined sharply to TShs 84.4 billion, compared to TShs 375.8 billion at the beginning of the period.
Group equity fell from TShs 768.1 billion in June 2025 to TShs 626.2 billion at the end of Q3, largely reflecting dividend distributions.
Retained earnings decreased from TShs 527.4 billion to TShs 458.3 billion.
Non-controlling interests also dropped significantly, from TShs 99.2 billion to TShs 26.3 billion, due to dividend payouts.
Managing Director Michelle Kilpin praised the team’s execution and emphasized the strength of TBL’s multi-category portfolio.
“Our performance is a testament to the strength of our portfolio of brands and the continued dedication and hard work of our teams,” she said, adding appreciation for the support of customers, partners, and consumers.
With expanding category momentum, mainly in beer and spirits, combined with sustained cost discipline, TBL appears well-positioned to maintain growth despite prevailing macroeconomic headwinds. The company’s continued focus on operational efficiency supports its resilience. However, currency volatility and rising finance costs remain potential pressure points that warrant close monitoring in the coming quarters.
