Share

Illovo suffers steep profit drop

Johannesburg - Illovo Sugar [JSE:ILV] posted a 34% drop in full-year earnings on Monday, hurt by a drought in South Africa and a negative currency impact, but said it expected stronger growth this year.

South Africa's Illovo, a unit of Associated British Foods, said diluted headline earnings per share for the year to end-March totalled 112.2 cents, compared with 170.7 cents a year earlier.

Headline earnings are the main profit gauge in South Africa and exclude certain one-off items.

Illovo, Africa's biggest producer of the sweetener, said revenue fell to R8.1bn from R8.5bn. The company has operations in South Africa, Malawi, Zambia, Swaziland, Tanzania and Mozambique.

Sugar production was slightly lower at 1.639 million tonnes, compared with 1.685 million tonnes a year earlier.

The company said drought in South Africa impacted production, while it was also hit by the negative currency movements.

A stronger rand is a negative for companies that sell their products overseas, as it eats into profits when revenue from abroad is brought home.

In lieu of a dividend, Illovo declared a final capital reduction distribution of 34 cents per share.
 
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.04
-0.7%
Rand - Pound
24.02
-0.5%
Rand - Euro
20.53
-0.3%
Rand - Aus dollar
12.36
-0.1%
Rand - Yen
0.13
-0.7%
Platinum
900.15
+0.4%
Palladium
1,000.00
-0.2%
Gold
2,212.54
+0.8%
Silver
24.59
-0.2%
Brent Crude
86.09
-0.2%
Top 40
68,094
+0.6%
All Share
74,290
+0.5%
Resource 10
56,964
+2.3%
Industrial 25
103,585
+0.3%
Financial 15
16,463
-0.4%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders