Cost efficiency improvements have helped to push Illovo Sugar (Malawi) Limited profit by more than 140 percent in the six months ending September 30 2016, financial statements have shown.
Profit after tax jumped to K5.1 billion from K2.1 billion during the same period last year, according to an unaudited financial statement.
The Malawi Stock Exchange (MSE)-listed sugar manufacturer has indicated that cost efficiency improvements will continue into the second half of the year.
Reads the report accompanying the financial statement: “Domestic sugar sales volumes in the first half of the year increased by 24 percent over the same period last year, while sales into regional and deep water export markets also improved.”
The company’s performance comes on the backdrop of poor climate conditions that have affected the company’s’ performance.
According to the statement, agricultural operations at both Dwangwa in Nkhotakota and Nchalo in Chikwawa continue to be affected by dry weather, pests infestations and lack of water.
Irrigation regimes were also disrupted by poor electricity supply and factory operations at Nchalo have been affected by various mechanical performance issues, the company has reported.
The company said illegal sugar importation from neighbouring countries has been curbed due to efforts by Malawi Revenue Authority (MRA) and Ministry of Industry, Trade and Tourism.
Illovo’s shares on MSE traded at K160 each yesterday. n