Tongaat profit climbs

Johannesburg - South Africa's Tongaat Hulett [JSE:TON] on Friday posted a rise in diluted headline earnings per share in a 15 months period and said it expects higher sugar production in the 2010/11 season.

Tongaat, an agri-processing business which changed its financial year-end to March 31 to match sugar seasons in its operations, said diluted headline earnings per share rose to 810 cents from 594.7 cents in the corresponding 15 months period last year.

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

"The company benefits from its growing operations and the emerging global dynamics of increasing demand for agricultural products, food, renewable energy and land usage," Tongaat said.

Tongaat has interests in land management and property development, but its main business is sugar production and milling.

The company, which has operations in South Africa, Mozambique, Zimbabwe and Swaziland, said revenue increased to R11.136bn from R9.453bn, while profit from operations rose to R1.691bn from R1.323bn.

Tongaat said it expects sugar production in the 2010/11 season to be 20 to 25 percent higher than the previous season.

The firm plans to increase sugar output in Mozambique over the next two season to 300 000 tonnes per annum from 134 000 tonnes in 2009/10.

"In South Africa, the rainfall in the cane growing months has been below average for the 2010/11 season, which will affect the sugar operations," Tongaat said.

Tongaat declared a final dividend of 275 cents per share.

- Reuters