Tongaat Hulett full-year HEPS to drop by about a third
The sugar producer says operating profit is expected to be at least 15% less than that reported in the year before
Tongaat Hulett said on Thursday that lower sugar prices, a stronger rand and higher imports took the wind out of its sails in the year to March.Headline earnings per share will drop by at least 30% in the review period, from the year-before period, the company said in a trading update.Markets reacted negatively to the news, sending the share price down nearly 8% to R85.70, its lowest point since early 2016.The sugar producer, which has operations in neighbouring countries, including Zimbabwe, Mozambique and Swaziland, said operating profit was expected to be at least 15% less than the R2.33bn reported a year ago."The South African sugar operations experienced higher than anticipated import volumes into the local market as a result of inadequate duty protection that prevailed for a period," according to the trading statement."The displaced locally produced sugar was exported in the latter part of the year and was impacted by lower world prices and a stronger currency."The KwaZulu-Nat...
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