Illovo Sugar Malawi Plc has registered a K9.2 billion net profit after tax in the first half of 2022, representing a 51 percent profit increase.
This is according to the company’s Managing Director Lekani Katandula who announced the development on Friday July 15, 2022 when he made a presentation during the company’s investors forum which was held in Blantyre.
Katandula attributed the profit to an increase in sales volume which is now at 154,000 metric tons from last year’s 139,000 metric tons, representing a 12% increase while in the other hand, production volumes are now at 102,000 metric tons from last year’s 105,000, representing 3% decrease.
He further told the forum that this would have not been achieved without support from all the relevant stakeholders, the general public and most importantly a hardworking spirit among Illovo Sugar Company staffs members.
“I would like thank all our partners who have contributed to this good
news and most importantly our team which has been so dedicative and committed towards this achievement. We say thank you all,” said Katandula.
In his presentation, the Managing Director further said the company is so grateful to have registered a 77 % net debt decrease which is now at K5.1 billion from last year’s K22.4 billion, a thing he said is not taken for granted.
However, he indicated that the company would have made a more significant profit if the country was spared from Cyclone Ana in January, which devastated the Lower Shire where Illovo operates its Nchalo Estate.
Katandula said the cyclone impacted the business as its interruption estimate is at K8.2 billion with material damage at K7.1 billion.
Meanwhile, Katandula says Illovo Sugar Plcs is so much interested to start a self-generation of power and sell the surplus to ESCOM, saying that’s the company’s possible solution to the current power outages which he said has hit them hard.
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