Cane supply up 8 %, Sugar production up 14%, Sales volume up 18%, Revenue up by 39% and Operating profit up 105%! We posted ZMW1.088 billion Profit After Tax (PAT), up from ZMW511 million earned in the six-month period ending February 2023.
This was mainly driven by increased domestic sales volume, with 145,997 metric tonnes of sugar supplied to the local market compared to 110,021 tonnes recorded in the corresponding period the previous year.
Total gross revenue was reported at ZMW3.26 billion during the six-month period, up from ZMW2.35 billion in the last half-year period.β
Announcing the Companyβs Half-Year results, Thursday, for the financial period ending 29 February 2024, Managing Director, Oswald Magwenzi, said the increase in profit was driven by improved domestic sales volume, despite significant cost pressure on key inputs and the depreciation of the Kwacha.
He said the additional sales volume sold in the domestic market demonstrated the adverse impact that illegal imports otherwise had on the Zambian market. Illegal imports deprive the country of payment of taxes, in addition to foregone employment opportunities. He explained that now that the region was experiencing a shortage of sugar, the country was able to estimate the inflows of these imports that the country would otherwise experience during the period under review.
Addressing stakeholders gathered at the Neelkanth Sarovar Premiere Hotel in Lusaka, Finance Director, Hezron Musonda, said that the Company had yet again delivered value to its shareholders and continued to make significant tax contributions to the national treasury, with the outlook remaining bullish.
Hezron further stated that the Company did not pass on all the costs that were incurred in the first six months but instead absorbed some of this demonstrating that the Company was committed to its vision of being the best at serving consumers.
Meanwhile, Oswald said the ongoing drought would have no impact on the Companyβs full 2024 Financial Year results, but that the impact of the intermittent power outages would only be felt in the 2025 Financial Year.
He also announced that construction of βProject Twazabuka,β a US $65 million facility aimed at enhancing customer centricity, was due to commence at Nakambala Estate around September this year, following necessary approvals.
As Zambia Sugar Plc, we remain committed to supporting our out-growers, who collectively constitute around 50% of our cane supplies.