Share price for Malawi Stock Exchange-listed Illovo Sugar Malawi rose by a record 124 percent at the end of its financial year in August 2023 from K500 in the preceding period.
The company has also recorded a 114 percent jump in net profit reaching K56.8 billion from K26.6 billion in the corresponding period.
This came out during the company’s Annual General Meeting held in Blantyre on Thursday.
Among other things, the company also posted a 46 percent growth in revenue to hit K272.5 billion.
It declared a K18.7 billion dividend; representing a 34 percent increase when compared to the K13.9 billion declared in the years ended August 2022.
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Illovo Sugar Malawi Chairperson Jimmy Lipunga said the company registered a remarkable performance and a good year on the back of a good management with capabilities to manage all the risks considering the harsh environment.
“We have an obligation to report half year results and so investors are able to take a view to what a company is worth because of the remarkable performance with regard to revenue and dividend growth, we saw a decent increase in the share price,” Lipunga said.
In an interview, Minority Shareholders Association of Listed Companies General Secretary Frank Harawa described the performance as exceptional.
“In the year under review, performance of the company has been good; we saw a sharp rise in the share price and reasonable dividends being paid out amid challenges that the industry sector experienced in the year.
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“However, we are aware that the company has started on a bad note in the first half of the current year but we hope things will turn around,” Harawa said.
Recently, the company indicated that it expects its profit to decline by about 35 percent in the half year period to February 2024.
According to a published trading statement the development has been necessitated by a drop in production during the period.
“Illovo Sugar (Malawi) plc accordingly advises that the profit after tax for the six-month period ending 29 February 2024 is expected to be between K22 billion and K25 billion representing a decrease of between 35 percent and 26 percent from the prior period profit after tax of K33.7 billion.
“The decrease in profit after tax is attributable to drop in production caused by lower cane yields resulting from the impact of Cyclones Ana and Freddy, substantial cost inflation, and foreign exchange losses of K17 billion due to the devaluation of the Malawi Kwacha against the US Dollar,” the statement reads.
Meanwhile, during a stakeholder meeting last week in Blantyre, the company’s Managing Director Lekani Katandula said the persisting sugar supply shortages are a result of similar challenges.
He indicated that the company is expected to resume production in mid- April and therefore supply of the product should be restored by the end of April.
