Illovo half-year profits hit K9.2bn

Illovo Sugar (Malawi) plc  has posted  a  K9.2  billion profit in the half-year period ended February 28,  up from the K6.1 billion reported for the same period last year, published financial statements from the firm show.

The Malawi Stock Exchange (MSE)-listed sugar manufacturer, in its financial results for the six months ending February 28 2022 published on Monday, said agricultural and factory operations during the review period registered commendable output.

In a statement accompanying the results co-signed by chairperson Gavin Dalgleish and managing director Lekani Katandula, the firm said domestic sugar prices improved significantly buoyed by its promotion, continued execution of the route to consumer strategy for delivery of sugar to the last mile customer general sales activation initiatives and reduced price arbitrage with neighbouring countries.

Reads the statement in part: “Interventions by the Malawi Revenue Authority and the Ministry of Home Affairs further assisted to reduce sugar imports of sugar into the country.”

The company, however, said the sugar exports to Europe, the United States of America and the African region registered a slight reduction against a background of logistical challenges due to Covid -19 impacts but there was an improvement in sugar demand in Easte Africa.

In respect to the six-month period performance, the company has since declared to pay a dividend of K5.56 per share, up from K4 per share paid in a similar period last year. n