Profit after-tax for Malawi Stock Exchange-listed Illovo Sugar (Malawi) plc grew by 250 percent to K77 billion in the year ended August 31, 2025, from K22 billion the previous year.
The firm says the performance came amid a volatile operating environment characterised by acute forex shortages and rising inflation, which it says affected most industries in the country.
During the year under review, however, the firm saw its sugar production declining to 203,786 tonnes from 222,190 tonnes the previous year.
It attributes this to “unusually heavy and persistent rainfall towards end of the season, which disrupted cane harvesting, haulage and supply”.
Export volumes also declined to 12,229 tonnes from 27,196 tonnes in the previous year due to a government-imposed export ban and other exogenous factors.
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Illovo Sugar Managing Director Ronald Ngwira told an investors’ forum in Blantyre that the firm remained upbeat on economic outlook, with key indicators looking positive.
He said policy shifts by the government would help bring about stability in the economy, thereby necessitating increased productivity.
Among other factors, Ngwira highlighted market-determined fuel prices and lowering government appetite for domestic borrowing as necessary.
“We are really glad to see that inflation has started going down. The indicators are looking positive, we are hoping for sustainability for businesses to thrive,” he said.
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Meanwhile, the firm, according to Ngwira, recently secured a $36 million loan from the International Finance Corporation that would be used for upgrading its irrigation infrastructure to connect its Nchalo Estate to the Shire Valley Transformation Programme canal.
This, according to Ngwira, would help increase output.
Illovo Sugar Board Chairperson Jimmy Lipunga said the firm was systematically positioned to satisfy the domestic market first as it enhanced output for increased production for the export market.
He said its inability to export desired volumes of sugar also led to an increase in its foreign exchange liabilities.
Minority Shareholders Association of Listed Companies Secretary General Frank Harawa hailed Illovo for its positive performance, saying shareholders expected the outturn to reflect increased dividends pay-outs.
