Tongaat Hulett lifts profits above R2bn
IOL Business - May 29th 2012, 11:44
Tongaat Hulett grew total profit from its combined operations by 53 percent to exceed R2 billion for the first time, the sugar producer said yesterday in reporting its audited results for the year to March.
An increase in sugar output, sales and prices ensured impressive gains as the group posted a 24.8 percent increase in revenue.
Chief executive Peter Staude said the firm benefited from a better unit cost base.
“Good progress was made across all the sugar operations to drive growth in future cane supply, (including hectares under cane, cane yields and cane quality) in order to fully utilise the existing sugar milling capacity and reduce unit costs as volumes increase,” he said.
The company’s total sugar production for the 2011/12 year grew by 14.3 percent to 1.15 million tons. This included increases of 42 percent in Mozambique, 12 percent in Zimbabwe and 7 percent in South Africa.
According to data supplied by Tongaat Hulett, the company posted revenue of R12.1 billion, an increase from R9.7bn in the previous year.
Profit from Mozambique sugar operations tripled to R402 million compared to R135m last year. Staude said this was driven by sugar production rising to 233 000 tons from 164 000 tons in 2011.
The company said headline earnings reached R891m, compared with R806m in 2011, a 10.5 percent increase.
New crops planted during the course of the year increased the area under cane by about 13 520ha and the replanting of existing roots was accelerated for the benefit of future milling seasons, the company said.
Tongaat Hulett said that there were “many initiatives under way to improve root age, farming practices and crop positioning… aimed at improving cane yields and sucrose content”.
In addition, the Mozambique and Zimbabwe operations had benefited from higher export realisations and domestic prices in line with regional pricing levels.
The Zimbabwe sugar operations generated profit of R621m compared with R454m the previous year.
“Sugar production in Zimbabwe increased by 12 percent to 372 000 tons (compared with 333 000 tons last year), with the majority of the increase coming from Hippo Valley.”
Operating profit from the South African sugar operations, including the downstream sugar value-added activities, increased to R354m, a 51 percent increase on the previous year’s R234m. Raw sugar production increased by 7 percent to 486 000 tons, compared with 455 000 tons in 2011.
In an interview, Staude said 22 percent of the company’s sugar production flowed to the EU market, consisting of sugar grown in Mozambique and Zimbabwe.
Staude said the South African government wanted local sugar cane output to be diverted towards bio-ethanol production, which would see about 5 percent of petrol derived from ethanol.
This would ease the pressure of the rising petrol prices that have plagued motorists. However, this would only come into effect once the Department of Energy had completed its regulatory framework.
Shares rose 0.06 percent to close at R109.38 yesterday.
Rooibos prices to rise by 15%
06/12/2013 - 09:24
Johannesburg - The price of Rooibos tea will rise by 15% from January next year because of supply constraints and growing demand, producer Rooibos Limited said on Tuesday.
Carlsberg buys stake in China's Chongqing
06/12/2013 - 09:00
Copenhagen/Shanghai - Danish brewer Carlsberg upped its stake in China's Chongqing Brewery to 60 percent, strengthening its foothold in the world's largest beer market by volume, and hopes to further increase its holding, the latter said.
China's wine deal in SA
06/12/2013 - 08:49
Cape town - Following on China’s recent significant investments in the French wine industry, especially in Bordeaux, they have also made their first investment in the South African wine industry.
Liquor producer receives award for corporate support in Ghana
05/12/2013 - 11:04
Indigenous liquor production giant, Kasapreko Company Limited, has been awarded for promoting festivals in Ghana. The company was adjudged the award at this year's National Tourism Awards held at the State Banquet Hall in Accra.
SA yellow maize futures rise to 15-month high
04/12/2013 - 08:15
Johannesburg - South African yellow-corn futures rose to the highest level in more than 15 months in Johannesburg trading.