PROFIT JUMP
Tongaat finds sweet spot in Zimbabwe
Operating profit in Zimbabwe increases considerably to R504m from R9m in the year-earlier period
Business may be tough in Zimbabwe, but Tongaat Hulett has found the sweet spot, with a reported 40% jump in group operating profit boosted by the performance of the Triangle and Hippo Valley operations. In 2016, Zimbabwe banned the importation of sugar, among other items, to shore up local industries. This increased local demand and consumption. Operating profit in Zimbabwe in the year to end-March increased considerably to R504m, from R9m in the year-earlier period. "Local market sales volumes and mix improved due to there being lower imports into the market," said CEO Peter Staude. "Exports increased on the back of higher production and prices realised into the EU and regional markets were some 20% above the previous year." Tongaat, which also has operations in Swaziland, Mozambique and SA, reported operating profit of R1.27bn from its sugar operations in the year under review, which was a turnaround from a loss of R15m in 2016. The company, which has a R15.7bn market capitalisati...
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.