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Monday, September 27, 2021

Malawi: Illovo Sugar Malawi Information Historic Web Revenue of K6 Bln in First Half-Yr Ended February

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Illovo Sugar Malawi Plc has made a web historic revenue of K6.1 billion in simply the primary half of the yr which ended on February 28, 2021 — representing a 200% improve in comparison with K2.1 billion which was made for a similar interval final monetary yr.

Making the announcement final Friday at a Stakeholders’ Discussion board held at Sunbird Mount Soche Resort in Blantyre Illovo Sugar Malawi Managing Director, Lekani Katandula mentioned it was pleasing to have carried out so effectively regardless of the worldwide CoVID-19 pandemic, which has paralyzed companies within the nation and the entire world.

“This has been case due to favorable climate circumstances for rising sugarcane that resulted into lowered sugar costs within the nation since December 2019,” Katandula mentioned.

“We managed to attain this by specializing in our value construction. We labored actually arduous to cut back sugar costs, we didn’t improve the costs on the home market.

“In truth, we sustained a lower cost which we did in December 2019 the place a packet of sugar was lowered from Okay900 to Okay800.”

Katandula additionally introduced that there’s an enchancment in dividends as this yr’s first half the interim dividend stand at K4 per share in comparison with final yr’s K2 per share.

In accordance with the financials that have been introduced, the corporate’s manufacturing income elevated by 1% at Okay74 billion; its finance prices dropped by Okay.328 billion to K1.7 billion; web borrowings dropped by 32% to Okay10.four billion whereas capital spending dropped by Okay.327 billion.

On the physicals, there was a 7% improve in sugar manufacturing; grower yield elevated by 17% whereas there was 43% improve in grower tons.

On the markets, home gross sales volumes elevated by 18% however there was a lower on export by 17% whereas total gross sales volumes have been marginally as much as 139kt.

Home gross sales pricing was impacted by low-cost unlawful sugar imports and shoppers’ affordability put up CoVID-19; port logistics additionally negatively impacted deep water export gross sales whereas world sugar costs remained low.

On alternatives, the corporate expects continuation of home advertising and marketing initiatives; existence of sturdy regional calls for and improved world sugar gross sales put up February 2021 whereas inflow of illegally imported sugar because of worth disparity and actions stays as considered one of its dangers.

Illovo Sugar Malawi Plc is listed on the Malawi Inventory Change with 76% of the issued share capital held by the Illovo Group and the steadiness by public and different institutional buyers.

The corporate yearly cultivates round 1.eight million tons of cane which — along with roughly 350,000 tons produced by Malawian smallholder farmers — leads to the manufacturing of about 250,000 tons of sugar.

One of many firm’s shareholders, Frank Harawa recommended the corporate for doubling the earnings and sharing the divides regardless of the CoVID-19 pandemic which has pressured many of the firms to close down.

As a substitute, Illovo was one of many company firms that contributed assets in direction of the CoVID-19 pandemic since its outset final yr.

As quickly as President Lazarus Chakwera introduced the Nationwide State of Catastrophe on January 12 following the upsurge of the COVID-19 second wave and appealed to stakeholders and well-wishers to help, Illovo Sugar Malawi contribute Okay100 million.

Medical provides price Okay20 million went to Queen Elizabeth Central Hospital in Blantyre and Okay40 million every for Kasinthula and the corporate’s different district property in Nkhotakota.

This contribution was along with the Okay10 million which Illovo Sugar made in the course of the first wave of the pandemic to the Kameza isolation heart in type of hospital beds and displays and an additional Okay60 million assist for Blantyre Metropolis Council, Chikwawa and Nkhotakota district hospitals in the course of the first wave.