Illovo warns of euro impact

Johannesburg - Illovo [JSE:ILV] Sugar said on Monday full-year share earnings fell 19% due to a dilution following a rights issue, and forecast higher cane and sugar output this year.

Illovo, a unit of Associated British Foods, said headline EPS - the main gauge of profit in South Africa, which excludes certain one-off, financial and non trading items - fell to 171.2 cents in the year to March after the rights issue.

The firm - which is Africa's biggest producer of the sweetener with operations in South Africa, Malawi, Zambia, Swaziland, Tanzania and Mozambique - said in a statement full-year group operating profit rose by 8% to R1.499bn.

Sugar production rose to 1.685 million tonnes, exceeding the previous season's output by 100 000 tonnes, while cane output for the 2009/10 season rose to 6.1 million tonnes, an increase of 1 million tonnes from the previous year.

Illovo said for the current 2010/11 year, cane, sugar and downstream output are expected to exceed last season's levels.

The group said sugar exports into the European Union are anticipated to grow after increased market access.

"Whilst this will be of long term benefit to the group, the current financial crisis in the eurozone and its impact on currency values is likely to have a negative impact on results in the current financial year," the company said.

Illovo declared a total dividend for the full-year of 86 cents per share, which includes an interim dividend of 32 cents declared in the first half.

- Reuters