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Illovo profit down 74%

WENT DOWN—Domestic sugar sales

Malawi Stock Exchange-listed Illovo Sugar Malawi plc has registered a 74 percent decline in profit after tax for the six months period ended February 2020, a trading statement issued on Friday shows.

The statement co-signed by Illovo Sugar Malawi plc Chairman, Galvin Dalgleish and Managing Director, Lekani Katundula, indicates that during the period under review, the company registered a profit of K2 billion compared to K8.1 billion profit registered during a corresponding period of the preceding year.

The drop in profit has been attributed to declining sugar sales on both the local and international markets.

“Domestic sugar sales have been on a downward trend against a background of the ongoing influx of both formal and informal sugar imports from neighboring countries notably Zambia and Mozambique. This was driven by the impact of currency devaluation in the bordering countries.

“Sugar exports into regional and deep water markets remain very challenging and have been compounded by the logistical problems brought about by the Covid-19 pandemic,” reads the statement in part.

The company is however confident that its business will pick up going forward as the firm has put in place strategies to enhance production and maximise earnings.

“The ongoing performance, efficiency and cost control strategies that have been implemented apart from efforts to protect the health and safety of personnel, will be focused on building real business stability, driving down the overall cost of production and improving operating margins and generating positive free cash flows into the future,” the statement says

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