News / Local
Tongaat Hullet (Zimbabwe) profits plunge to US$1m
07 Jun 2016 at 07:16hrs | Views
Tongaat Hullet Zimbabwe operating profits for the year ended March 2016 have plunged to only US$1 million compared to US$35 million in the year ending March 2015, according to group results released this week.
Masvingo Mirror reported that the profits are by far the lowest recorded by the company since 2013 when the operating profits figure stood at US$74 million.
The whole group including all its subsidiaries including South Africa, Mozambique and Zimbabwe however, managed an operating profit of R1,808 billion or US$100 million.
The company's audited results gave a number of reasons for the poor performance including a lower cane yield caused by poor growing conditions of low rainfall and restricted irrigation in Mozambique and Zimbabwe. The dam levels in the two countries were low, according to the audit report.
But key to the poor results were lower export sales and lower export prices.
The report also cited problems of power cuts in Mozambique and Zimbabwe which also had a negative impact.
In addition to lower sugar volumes, export revenues were also impacted by a lower international sugar price, with regional deficits markets linked to that price.
"The Zimbabwe sugar operating profit reduced to R15 million compared to R386 million in the prior year. Sugar production of 412 000 tonnes was below the 445 000 tonnes of the prior year. There were both lower export sales volumes and lower export prices. Domestic sales volumes have been maintained," said the report.
There are however factors that point to a positive future and these include an improved import protection by the Zimbabwe Government. Growth is also expected in consumption per capita.
The operating profit for the last four years were as follows US$1 million in 2016; US$35 million in 2015; US$33 million in 2014 and US$74 million in 2013.
Production also stood at 412 000tonnes in 2016; 445 000tonnes in 2015; 488 000tonnes in 2014 and 475 000tonnes in 2013.
Masvingo Mirror reported that the profits are by far the lowest recorded by the company since 2013 when the operating profits figure stood at US$74 million.
The whole group including all its subsidiaries including South Africa, Mozambique and Zimbabwe however, managed an operating profit of R1,808 billion or US$100 million.
The company's audited results gave a number of reasons for the poor performance including a lower cane yield caused by poor growing conditions of low rainfall and restricted irrigation in Mozambique and Zimbabwe. The dam levels in the two countries were low, according to the audit report.
But key to the poor results were lower export sales and lower export prices.
The report also cited problems of power cuts in Mozambique and Zimbabwe which also had a negative impact.
"The Zimbabwe sugar operating profit reduced to R15 million compared to R386 million in the prior year. Sugar production of 412 000 tonnes was below the 445 000 tonnes of the prior year. There were both lower export sales volumes and lower export prices. Domestic sales volumes have been maintained," said the report.
There are however factors that point to a positive future and these include an improved import protection by the Zimbabwe Government. Growth is also expected in consumption per capita.
The operating profit for the last four years were as follows US$1 million in 2016; US$35 million in 2015; US$33 million in 2014 and US$74 million in 2013.
Production also stood at 412 000tonnes in 2016; 445 000tonnes in 2015; 488 000tonnes in 2014 and 475 000tonnes in 2013.
Source - Masvingo Mirror
