Company Intelligence — Overview
Tanzania Cigarette Co.
A high-margin staple, compounding cash at 65
DSE: TCC · Dar es Salaam Stock Exchange · FY ending 31 Dec
135 bn
FY25 profit for the year
507.2 bn
FY25 revenue
1,354
FY25 EPS · TZS
1,050
Dividend · TZS/sh
314.1 bn
Gross profit
~62%
Gross margin
Subscriber tier
The full 10-section Investment Brief
Full model · valuation · return analysis · recommendation
The analysis — key observations
- Profit growth with pricing power. Profit rose 17% to TZS 135bn and EPS climbed to TZS 1,354 from 1,153 — staple pricing power flowing through to the bottom line.
- Exceptional margins. Gross profit of TZS 314.1bn on TZS 507.2bn revenue is an ~62% gross margin — a hallmark of an entrenched, low-capital consumer franchise.
- Generous, rising payout. A total dividend of TZS 1,050/share (TZS 400 interim + 650 final) — the company returns the bulk of its earnings as cash.
- Defensive demand. A mature, regulated category with steady volumes — low growth, but highly cash-generative and resilient.
A textbook cash compounder: modest top-line growth, very high margins, and almost all profit returned as dividends. The watch items are regulation, excise, and the long-term category outlook — not near-term cash generation.
Valuation context — TZS/share (illustrative, educational)
Illustrative framing for education only — not a price target or recommendation. For a live market price and P/E, see DSE:TCC; figures here are FY2025 reported results.
Market backdrop — DSE & macro · mid-2026
3,950
DSE All-Share Index · 18 Jun 26
34.2 tn
DSE market cap · TZS
~6%
GDP growth
~3.3%
Inflation · stable macro
Key risks
Regulation & excise
Excise duty and tobacco regulation are the dominant policy risks to volumes and margins over time.
Category & ESG outlook
A declining-category, ESG-screened sector — relevant for some investors regardless of cash generation.
Liquidity
A thin DSE float and concentrated ownership shape how the shares trade.