By Daniel Zimba:
Illovo Sugar Company plc has announced a decline in its profit for 2024.
The profit has decreased from K57 billion in 2023 to K23 billion. On the positive side, there was a reported increase in revenue.
In the year under review, the Malawi Stock Exchange-listed sugar manufacturer posted total revenue growth of K314 billion, up from K272 billion in the previous year.
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Addressing shareholders on Friday, Illovo Sugar acting Managing Director Kondwani Msimuko cited the drop in profitability to economic woes Malawi was facing.
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He singled out foreign currency scarcity, high taxes, vandalism and other macroeconomic uncertainties among the challenges.
“We had lower profits last year, and our intention for this meeting was actually to get to our investors and update them on the company’s performance, factors behind it and what we are doing to improve [the situation] moving forward,” Msimuko said.
Msimuko then assured investors that the company was making strides to improve revenue generation through increased production and export of products.
Illovo Sugar plans to invest about K51 billion in improving its production systems through diversifying to cotton production, and shifting from sprinkler systems of irrigation to drip irrigation systems.
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In her presentation, Illovo Sugar Director of Legal and Corporate Affairs Maureen Kachingwe said the company spent about K2.13 billion towards supporting community development activities through their response to natural disasters and fulfilment of corporate social responsibility roles.
One of the shareholders, Frank Harawa, said they were concerned about the company’s low profit.
He was quick to commend management for its efforts amid a challenging operating environment.
