Illovo profit hits K16.4 billion

By Florence Magowa:

Illovo Sugar Malawi recorded a K16.4 billion profit in the year-ended August 31 2018, up from K7 billion registered in 2017, the firm said on Thursday.

Briefing investors in Chikwawa, the firm said, having produced 230,020 million tonnes of sugar last year, the company’s revenue rose to K141.8 billion from K124, 035 billion in 2017.

Illovo Sugar Malawi Finance Director, Edward Namboya, said the company’s directors resolved to invest the profits in repaying its loans.

“We understand our shareholders’ frustrations but we also want to assure them that, should there be any progress, we will let them know.” Namboya said.

He said power shortages, adverse weather conditions and pests and diseases were some of the challenges the company faced in the year.

Namboya assured shareholders that more cost efficient measures have been taken to resolve the challenges stated.

One of the minority shareholders, Frank Harawa, said their biggest problem with Illovo Malawi has been the outstanding debt which has affected dividend payment.

“This has been our cry. We said to Illovo in the last annual general meeting that the best solution here is to raise money from us to settle the debts and then get profits and share them.” Harawa said.

Illovo Sugar Malawi employs over 9,000 people at peak time during the year, 5,800 permanent employees and about 3,700 seasonal.