Illovo Sugar logs K20 billion downfall
Illovo Sugar’s Financial Director, Msimuko, has disclosed that inflation, devaluation and natural disasters are the major factors contributing to the company’s K20 billion decline in operating profit and K11 billion downfall in net profit for the first half of the financial year.
Msimuko revealed this during an investor meeting at Mount Soche Hotel in Blantyre, where he updated shareholders and stakeholders on the company’s progress and discussed mitigating factors to address major commercial challenges.
“Cyclone Freddy has left our production areas with high salt levels, delaying sugarcane growth, and devaluation has resulted in an exchange loss of approximately K18 billion, impacting our overall profitability,” Msimuko explained.
“Erratic weather patterns have significantly affected our production operations in Dwangwa and Nchalo, resulting in a shortage of stocks.”
However, Msimuko emphasized that Illovo has implemented strategies to retain soil fertility, ensure sugar availability in rural markets, and explore cotton investments and exportation.
The company aims to empower farmers and create a thriving Malawian community through affordable food and energy.
Shareholder Joe Maere expressed concern over Illovo’s performance, citing external factors beyond the company’s control.
He encouraged Illovo to retain suspended dividends to boost business operations instead of borrowing.
“Inflation, devaluation, and natural disasters have resulted in a shortage of exposure and quality existence for the company, but we acknowledge Illovo’s resilience,” Maere said.
“We hope the company will maintain its performance for the betterment of shareholders and stakeholders on the Malawi stock exchange.”
Illovo Malawi is a leading sugar producer in the country, with operations in Dwangwa and Nchalo.
The company is listed on the Malawi Stock Exchange and is a significant contributor to the country’s economy. Illovo Malawi is a subsidiary of Illovo Sugar Africa, a leading sugar producer in Africa.
The post Illovo Sugar logs K20 billion downfall appeared first on Malawi Voice.