The dividend drought at Illovo sugar Malawi is continuing as the company’s board has failed to declare a dividend for its shareholders.
This has been noticed through the company’s financial report for the year ending 31st August 2018.
It is despite the company posting a 100 percent profit increase from K7.7 billion in 2017, to K16.4 billion this year.
Shareholders of Illovo have not been finding their investment in the company beneficial, owing to a lack of dividend payouts.
In the last three years, no dividends have been given out to the company owners, due to what the managers and board describe as poor performance of the company.
During their 52nd annual general meeting last year, there was tension when the board disclosed that the shareholders would not be getting any returns.
This was attributed to what the board termed as adverse trading conditions and cash flow constraints of the group.
The board chairman then gave assurances that they would only lift the dividend suspension until the group covers its debt.
In the 2018 report, Chairman Gavin Dalgrish discloses that a significant amount of their foreign debt has been repaid.
Dalglish is maintaining that reduction of their debt levels will remain a priority.
The Illovo chairman further adds that the company’s debt levels are likely to continue having a marked effect on profitability and general business.
Meanwhile, the company has managed to sell sugar volumes of 170 thousand metric tons, attributed to their recent change in market focus which centres much on customers.
Illovo is one of the companies which hold a high share price on the stock market.