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Johannesburg - Tongaat Hulett [JSE:TON] on Monday posted a 9% rise in first-half profit, helped by growth in its sugar business and said it expects to benefit from the recent surge in global sugar prices.
Tongaat reported diluted headline earnings per share for the six months to end-September of 468.9c, compared with 430.6c last year.
Headline earnings exclude certain one-off, financial and non-trading items.
The company - which has operations in South Africa, Mozambique, Zimbabwe and Swaziland - has interests in land management and property development, but its main business is sugar production and milling.
Tongaat said it has benefitted from growth of sugar production in Mozambique and Zimbabwe, but its results had yet to reflect the surge in world sugar prices.
It said regional sugar prices are now starting to rise in response to higher global prices.
Global sugar supply worries recently pushed raw sugar prices to a 30-year high, while refined sugar hit a record high.
Tongaat, however, said its sugar production in South Africa was hurt by the severe drought in the current season.
South Africa this year faces a drought in the rain-dependent sugar growing area of KwaZulu Natal Province, which is seen weighing on output.
Tongaat said profit from operations rose 10% to R963m, from R873m earned in the same period last year.
Revenue rose to R4.724bn from R4.011bn last year.
The company declared an interim dividend of 110c.
Shares of the company are up 8% so far this year, underperforming a 15% rise in the JSE's all-share index.
Tongaat reported diluted headline earnings per share for the six months to end-September of 468.9c, compared with 430.6c last year.
Headline earnings exclude certain one-off, financial and non-trading items.
The company - which has operations in South Africa, Mozambique, Zimbabwe and Swaziland - has interests in land management and property development, but its main business is sugar production and milling.
Tongaat said it has benefitted from growth of sugar production in Mozambique and Zimbabwe, but its results had yet to reflect the surge in world sugar prices.
It said regional sugar prices are now starting to rise in response to higher global prices.
Global sugar supply worries recently pushed raw sugar prices to a 30-year high, while refined sugar hit a record high.
Tongaat, however, said its sugar production in South Africa was hurt by the severe drought in the current season.
South Africa this year faces a drought in the rain-dependent sugar growing area of KwaZulu Natal Province, which is seen weighing on output.
Tongaat said profit from operations rose 10% to R963m, from R873m earned in the same period last year.
Revenue rose to R4.724bn from R4.011bn last year.
The company declared an interim dividend of 110c.
Shares of the company are up 8% so far this year, underperforming a 15% rise in the JSE's all-share index.
