Tongaat Hulett expects interim earnings growth
Tongaat Hulett says the severe drought in KwaZulu-Natal has affected cane yields and subsequently sales volumes, but it still expects to report an increase in interim earnings. For the six months to September 30, Tongaat said operating profit would increase 5% to R1.4bn compared with the prior year and headline earnings were expected to rise by about 4% to R631m. Mergence Investment Managers industrial analyst Peter Takaendesa said the trading update implied that interim headline earnings per share would be slightly below expectation. "Sugar production continues to disappoint but recent price increases have helped the performance of the business and the smaller starch operations continue to be the bright spot of Tongaat. The results could have been much better if land sales profits had maintained their momentum seen last year". He said it was unfortunate that the company’s sugar operations and land sales were taking turns to drag the group’s overall performance down. "Note that the ...
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.