Tongaat’s sugar operations compensate for its land segment
Company warns that lower cane yields due to the drought in KwaZulu-Natal and poor growing conditions in Mozambique and Zimbabwe will affect overall volumes
Tongaat Hulett on Monday reported a 4% rise in first-half headline earnings to R631m, which matched its recent guidance. The financial performance was primarily bolstered by the sugar operations, which more than compensated for a disappointing performance in the land conversion and developments segment. Operating profit in various sugar operations jumped to R825m in the six months to August from R477m in the year-earlier period, reflecting improved local prices, the benefits of import protection in select geographies, such as Mozambique, and higher international prices. The mid-cap company cautioned, however, that overall volumes were still being affected by lower cane yields due to the drought in KwaZulu-Natal and poor growing conditions and restricted irrigation levels in Mozambique and Zimbabwe due to low dam levels.
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.