A majority-owned subsidiary of Johannesburg-listed Illovo Sugar, Illovo Sugar (Malawi), on Monday, said profits for the year to March had slipped as economic conditions during the period remained tough.
Illovo Sugar (Malawi), which is listed on the Malawi Stock Exchange (MSE), said profits from operations sagged 12 percent to K9 billion ($23 million) from K32 billion ($81 million) as exchange rates and interest rate rises and dips got harder to forecast and manage.
However, the company believes the return to more normal weather conditions at Nchalo and Dwangwa estates will show a “modest increase” in terms of the total harvest.
The company is expecting that total sugar production will be modestly better than the one in the previous financial year.
This will be predicated on a more steady rateable supply of cane and a full return to factory rated crushing throughput.