Disappointing performance wobbles Tongaat Hulett
Poor performance in the 2017-2018 year spills into the current financial year
Tongaat Hulett’s shares slumped almost 12% in early trade on Friday as the listed agriculture and agri-processing group reported disappointing interim results in which operating profit fell by 64%. The sharp fall in profit represents worsening performance since the end of the 2017-2018 financial year in which the company reported decreases in headline earnings (37.2%) and operating profit (16.1%). The KwaZulu-Natal-based company attributed the drop in operating profit from the previous R1.5bn to R530m to its failure to conclude land transactions within the first six months of its financial year. “Furthermore, local market conditions in the South African and Mozambique sugar operations negatively impacted on both revenue and cane valuations which reduced operating profit,” Tongaat said. The company reported a headline loss of R87m compared to headline earnings of R661m in the same period last year. Headline loss per share was 74c, a reduction of 113%. Tongaat’s loss per share was 94c...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.