Advertise with fastmoving.co.za
 
 

Illovo ups revenue, warns on output
Illovo ups revenue, warns on output

Illovo ups revenue, warns on output

FMCG SUPPLIER NEWS

Fin24 - Nov 23rd 2011, 08:39

Johannesburg - Illovo Sugar [JSE:ILV] posted a 12% rise in first-half earnings on Wednesday helped by currency weakness and cost cutting but said output was still struggling to recover from a 2010 drought in KwaZulu-Natal province. 

Illovo, a unit of Associated British Foods, said diluted headline earnings per share for the six months to end-September totalled 62.9 cents compared with 56.2c in last year's sugar season.

It said revenue rose 7% to around R4.55bn.

“It is pleasing to report increased profits on the back of favourable exchange rates, cost cutting and better market conditions,” managing director Graham Clark said in a statement.

Regional currencies generally lost ground in the period including the rand which skidded sharply weaker in September. Such trends boost exporters who earn foreign exchange and pay most costs in local currencies.

Overall output remains a concern though modest increases for the year are seen in Malawi, Mozambique, Swaziland and Tanzania.

“Group production levels continue to be impacted by the knock-on consequences of the severe drought in KwaZulu-Natal, South Africa in 2010,” Clark said.

The group said it expected full-year production to be down 10%.

Illovo is Africa's biggest producer of the sweetener and has operations in South Africa, Malawi, Zambia, Swaziland, Tanzania and Mozambique.

In lieu of a dividend, the company declared an interim capital reduction distribution out of share premium of 23.0c per share.

Illovo shares have fallen 7% so far this year, compared with a 2.3% fall in JSE's All Share [JSE:J203] Index. 

Related News

Mr Price Group's shares rally on annual results
31/05/2019 - 10:16
Mr Price Group’s shares opened sharply higher after the company raised its annual dividend thanks to better earnings.

Pepkor says market-share gains boosted half-year earnings
29/05/2019 - 09:34
Pepkor, which owns the Pep and Ackermans brands, says sales and earnings rose in the six months to end-March thanks partly to market-share gains in clothing and merchandise.

Tiger Brands reports lower sales in wake of the listeriosis crisis
22/05/2019 - 09:29
Tiger Brands, which was named as the culprit in the 2018 listeriosis outbreak, says sales in the six months to end-March edged lower because of a slump in processed-meat sales and weak revenues from outside SA.

Spar lifts dividend after 'strong' interim performance
15/05/2019 - 08:53
Spar Group has hiked its half-year payout to shareholders by 5.2% on the back of “a strong performance” in the six months to end-March.

Pepkor says half-year earnings rose up to 54.1%
14/05/2019 - 08:48
Pepkor, previously Steinhoff Africa Retail, said that its half-year earnings rose by up to 54.1%.