Cyclone threatens Illovo Sugar growth
Malawi Stock Exchange-listed Illovo Sugar Malawi plc has said cyclone threats in neighboring Mozambique could affect the company’s growth prospects.
Illovo Sugar Malawi Board Chairperson Jimmy Lipunga said this Wednesday during the company’s annual general meeting in Blantyre.
He said although the firm prepared for such natural calamities, experience has shown that effects of harsh weather conditions are detrimental to businesses.
“Our fear is not only on the growth prospects of the company but even the threat to human life which such calamities pose,” he said.
In the year ended August 31 2022, the company was affected by Cyclone Ana which hit the country in January and swept some of its sugarcane farms and destroyed some infrastructure.
During the year, the company posted a profit-after-tax of K26.6 billion, and a final dividend of K21 per share was declared.
Minority Shareholders Association of Listed Companies in Malawi General Secretary Frank Harawa applauded the company for the positive outturn.
He said the outlook remains promising.
“I want to urge the company to quickly implement diversification programmes because diversification will help bring good returns for investors,” he said.
Illovo Sugar Malawi is the only company from the manufacturing sector which is listed on the Malawi Stock Exchange, which has 16 counters.
Justin Mkweu is a fast growing reporter who currently works with Times Group on the business desk.
He is however flexible as he also writes about current affairs and national issues.