Illovo lifts earnings

19 November, 2006 at 12:14 pm | Posted in Companies | Leave a comment

South African sugar producer Illovo Sugar on Friday reported a 73 percent increase in headline earnings per share on a sugar season basis to 75.7 cents for the six months ended September from 43.8 cents a year ago. On an actual basis, diluted HEPS were up 75.2 percent to 94.8 cents.
An interim dividend of 30 cents per share was declared, up from 20 cents a year ago.

Group operating profit was up 64 percent to 516.1 million rand, while revenue grew 223 percent to R3.26 billion.

Managing director, Don MacLeod, said: “This is another pleasing set of results on the back of higher world sugar prices and greater efficiencies across the group. Our operations outside South Africa performed extremely well with record production in Malawi and Zambia, but in Tanzania there was an early season drought which affected our outgrowers.

“Production in South Africa was impacted by variable weather conditions. Overall we are set to have another year of solid growth.”

Illovo said that on a sugar season basis the group achieved pleasing results with headline earnings up 75 percent to R259.2 million over the same period in the previous year.

The group benefited from a higher world sugar price, improved domestic market sales and prices, weaker exchange rates and operating cost reductions. Lower sugar production caused by adverse weather conditions in South Africa and Tanzania has partly offset these benefits.

The contributions to operating profit were: sugar production 65 percent, cane growing 28 percent and downstream 7 percent. By country contributions were: South Africa 24 percent, Malawi 33 percent, Zambia 23 percent Swaziland 9 percent, Tanzania 10 percent and Mozambique 1 percent.

(BusRep)

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