Illovo Malawi reduce sugar prices, records highest profits
Illovo Sugar (Malawi) has announced a reduction of sugar prices by an average of 5% owing to the appreciation of the kwacha.
The company says the ex-mill prices of sugar have been reduced by an average five percent on account of the recent appreciation of the kwacha.
In a statement , Illovo indicates that a brown pre-pack bale of 20 one kg packets now sells at K7 045.92—approximately K352.30 (about 88 US cents) per packet. And a bale of 20 one kg packets of white sugar will sell at K7 269.6—about K363.48 (about 90 US cents) per packet
Meanwhile, Malawi’s Illovo Sugar has contributed the highest revenue, recorded by the Group in the six countries in this part of Africa about US$1.1 billion.
According to a report on Swaziland Times Malawi has contributed US$90 million with Zambia on second at US$47.88 million while South Africa takes up the third on US$16.43 million and Swaziland US$15.58 million on fourth.
Mozambique is fifth with US$1.091 million and Tanzania anchors the six country chart on sixth with a contribution of US$9.37 million.
The group’s profit for the year after tax stood at US$120 million compared to US$60.64 million the previous year.
The report states that an overview of the report reads that the 2012/2013 season has demonstrated the positive benefits from ongoing initiatives around the group to build on their production capacity and enhance operational efficiency.
It reads that recovery from the previous year’s drought in South Africa and the benefit of recent factory expansions around the group, notably in Swaziland, Zambia as well as improved plant efficiency and better process recoveries resulted in the group’s sugar production increasing over that of the previous season by 14 per cent to 1.75 million tonnes.
The review report further reads that cane quality was generally better than the previous season and levels of sucrose content in cane, in particular, were higher in all operations other than in Swaziland where wet conditions depressed sucrose production.
“Group sugar production increased by 220 343 tonnes compared to the previous season, largely driven by the recovery in South Africa where sugar production rose by 35 per cent year on year. In Mozambique, sugar production fell short of the previous year due to a generally poorer factory performance, while all other operations recorded increases in sugar production,” the report reads in part. It adds,
“Credible factory performance was achieved in all operations other than Mozambique, with highlights being very good mechanical efficiency in South Africa and Malawi and the expanded factories in Zambia and Swaziland running at their new throughput rates.”
The group’s performance has been boosted by cane production from its own operations and according to the Managing Director Graham Clark as quoted by SA publication, Business Day, he said, “We see this as a very sound set of results after a lot of hard work getting the basics right in the business. Productive capacity is good and productivity has increased so all the indicators from within the business are positive.”
The group says the 2013/2014 season is expected to reflect further focus on capacity utilisation and productivity across the group.
“In addition, prevailing weather conditions have been good, notably in South Africa. The result should see a further increase in cane production from our own operations and from our growers, which should underpin a moderate increase in sugar production for 2013/2014,” the report reads further.
Illovo Sugar is Africa’s leading producer of sugar and invested in Malawi’s Sugar Corporation of Malawi (Sucoma) in the early 2000.
Sucoma changed to Illov Sugar in 2005.
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