Low sugar output a dent on forex—Illovo
Listed sugar manufacturer Illovo Sugar (Malawi) Limited has said it expects a significant reduction in sugar production this season at its Nchalo Mill in Chikwawa due to dry spells that have hit the Shire Valley.
Nchalo Mill agriculture manager Keith Domleo said in an interview on Friday the Malawi Stock Exchange (MSE)-listed sugar producer’s output will decrease by between 10 and 15 tonnes per hectare.
“With the dry spell and siltation of Shire River, there is a possibility that our company will lose in excess of 140 000 tonnes of sugarcane. This is likely to translate in a decline not only in revenue of the company, but also foreign exchange for the country,” he said.
A recent trading update from Illovo Sugar (Malawi) Limited advised its shareholders that profit after-tax for the year ending March 31 2016 is expected to be at least 40 percent below what was realised in the previous season on account of trading conditions.
The company’s profit for the period ended September 30 2015 also dropped by 37 percent to K9.1 billion.
Illovo’s performance on sales was also not spared in the previous period as its sales into the domestic, regional and European Union (EU) raw and direct consumption markets were below forecast which, according to the company, was due to unfavorable market pricing pressures.
