Tongaat earnings seen easing
Johannesburg - Sugar producer Tongaat Hulett [JSE:TON] advised on Friday that its headline earnings per share for the half-year ended September 2011 are expected to be 474 cents per share compared with 482c for the six months to September 2010.
The company said its revenue increased by 27.6% to R6.027bn and profit from operations was expected to increase to R1.047bn from R963m. Excluding the R130m gain in the prior period in respect of the pension fund employer surplus account allocation, the increase in profit from operations is 25.7%.
The profit from operations includes profit from the Mozambique sugar operations of R267m, the Zimbabwe sugar operations of R364m, the SA agriculture, milling and refining operations of R54m and the various other sugar and downstream activities of R172m.
Profit from the starch operations amounted to R167m and profit from the land conversion and development operations was R62m. A net charge of R39m was reflected on the centrally accounted and consolidation items.
Total net profit, before minority interests, is expected to be R597m compared with 2010's R552m. Headline earnings are expected to be R501m for the half-year, compared to the R507m earned in the same period last year.
Tongaat Hulett's total sugar production for the 2011/12 year is expected to increase by some 14% above the 1 million tonnes produced in 2010/11, with more than 80% of the season's cane having been milled by the end of October 2011.
In South Africa, sugar production is expected to be some 8% above that of last year. The gap between the hectares under cane and the hectares milled is unusually large, inter alia, as a result of the significant cane root planting following last year's drought and the 15 months required to first harvest.
Sugar production for the year in Zimbabwe is expected to be 10% above last year and in Mozambique should increase by some 45%.
The company's results are scheduled for release on Monday, 14 November 2011.