The Tobacco Commission recorded a K325 million profit in the year-ended June 2021 from a loss of K81 million registered in 2020, the company’s Chief Executive Officer Joseph Chidanti Malunga has said.
Following the impressive financial performance, TC declared a 20 percent dividend to its shareholder, the Malawi Government.
Malunga disclosed this when he presented to Vice President Saulos Chilima a report on progress of tobacco industry reforms.
According to Malunga, TC’s audited financial statements for the years ended 30th June 2021 and 2020 show the commission’s revenue stood at K3.6 billion and K3.5 billion, respectively.
He attributed TC’s improved financial performance in 2021 largely to prudent utilisation of resources.
“As part of our ongoing reforms, we introduced and implemented sound financial controls which helped us cut out expenditure in non-priority areas, hence the huge savings,” Malunga said.
TC runs without government subvention and the institution’s revenue is generated from statutory levies.
TC’s presentation to Chilima covered five reform areas, namely the strengthening of the regulatory framework, enhancement of tobacco production and marketing integrity, improvement of stakeholder understanding of the Commission’s mandate and roles, improvement of financial sustainability; and the strengthening of institutional capacity.
The presentation covered reforms undertaken by the commission from March 2021 to date.
During the interface, Chilima hailed TC for the strong financial performance.
“This is commendable. Some parastatals are making losses and here you are, paying dividends to the shareholder. No matter how small it is, this is commendable,” Chilima said.
Meanwhile, TC, which is mandated to promote the production and marketing of tobacco, says it is geared to increase the country’s annual tobacco production volumes by 2023.