Illovo ups revenue, warns on output
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.
Tiger Brands set to bounce back in 2019
15/01/2019 - 11:47
Tiger Brands, which lost R1.4bn in revenue in financial 2018 due to listeriosis, looks set to bounce back from the deadly outbreak, with revenue and earnings to rise steadily in the next three years, according to brokerage firm Arqaam Capital.
Superdry half-year profits drop by 49%
13/12/2018 - 10:13
Superdry has revealed a massive drop in underlying profit in its interim results despite an uptick in overall revenue, as the fashion retailer conceded it had a “difficult first half”.
Food prices dip in October
05/11/2018 - 13:37
International food commodity prices dipped in October, as falling dairy, meat and vegetable oils prices more than offset a surge in sugar prices, according to the United Nations.
RCL’s sugar business takes strain
06/09/2018 - 21:28
The government should do more to shield food and sugar producers from the influx of cheap imports, RCL Foods CFO Rob Field said.
Target enjoys strongest sales growth since 2005
04/09/2018 - 14:57
Retailer Target reported a 6.5 percent same-store sales spike in the latest quarter, its biggest growth in 13 years.