Posts K26.6 billion profit
Sugar manufacturer ILLOVO Sugar (Malawi) Plc. has post a supernormal profit in 2022, as high domestic sales cushioned it from a low-production induced revenue fall.
During the year under review, Illovo’s sugar production dropped from 279 000 to 230 000 tones due to tropical cyclone related floods.
However, published financial results for its financial year that ended on 31 August 2022 show a 30% profit jump from K20.5 billion to K26.6billion kwacha.
This also happened at a time the company suspended sugar exports because of supply challenges on the domestic market since April 2022.
The company’s Managing Director Lekani Katandula has attributed this profit jump to increased domestic sales –from 173 000 to 214 000 tones.
“Our profitability improved over the previous period by around 30% and that was on the back of improved total revenue of 14% which was achieved despite a significant reduction in total production.
“The improvement came on the back of much higher domestic sales within the country and that in turn helped us to reduce our total net debt position which enabled us to move from a company with net debt position to net cash position,” he said.
Meanwhile, the company’s shareholders have reasons to smile as the board of directors has recommend a dividend of K15 billion.
This, is up from the K12.8 billion dividend that was declaired in 2021 and K1.4 billion in 2020.