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Illovo projects 60% profit rise

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Malawi Stock Exchange (MSE)- listed sugar making firm, Illovo Sugar Malawi plc, has said it expects profit for the half year ending February 28 2021 to be at least 60 percent higher than the previous corresponding period.

This is contained in a statement the firm issued recently in line with MSE listings requirements which dictate that a listed company is required to publish a trading statement as soon as there is a reasonable degree of certainty that the financial statements for the period to be reported upon will differ by at least 20 percent from that of the previous corresponding period

Illovo Sugar Malawi Communications and Stakeholder Relations Manager Olive Kawelama attributed the expected surge in profit to improved production and sales on the domestic and export markets, among other factors.

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“Continued efforts in our cost-rationalisation initiatives have also helped contain our cost increases below inflation, hence attaining a moderation of sugar cost per tonne in real terms,” she said in an emailed response.

Illovo sugar Malawi has in the recent past seen a continued drop in profit due to influx of smuggled sugar, among other reasons.

Kawelama said the firm is noting with concern an influx of smuggled products into the country and continues engaging and collaboration with public entities including the Malawi Revenue Authority (MRA) and Ministry of Trade to curb the malpractice.

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She remained upbeat on business prospects.

“We are aware that the impact of Covid across our markets will continue to slowdown growth but it is our hope that this will soon lessen as the worldwide vaccination drive gathers pace.

“We also anticipate the illegal imports to decline as inflation soars in the markets that enjoyed the benefits of rapidly depreciating currencies,” Kawelama added.

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