Tongaat Hullets exports 56% drop

By Alois Vinga

Agro-industrial giant LISTÉ Tongaat Huletts reported a 56% drop in exports.

Presenting the company’s financial performance for the six-month period ended September 30, 2021, entity chairman Canaan Dube said the significant decline was primarily due to a directive from the Common Market for Eastern and Southern Africa ( Comesa) which provided for the allocation of quotas in Kenya. being reduced.

“As a result, the volume of export sales for the six-month period decreased by 56% to 29,558 tonnes, down from 2020: 66,629 tonnes. The volumes initially targeted for this market have been redirected to meet strong local demand, ”he said.

However, said Dube, market development efforts are underway to establish other regional markets to complement the existing stable market in Botswana and reduce the risk of market concentration in Kenya.

These developments come at a time when the sugar industry has closed the sale of 13,000 tonnes of sugar as part of the country’s annual export quota to the United States, at an average net price 9% above the US market. goal.

During the period under review, however, operating income increased by 12% to 2.9 billion dollars against 2.6 billion dollars recorded last year and thus benefiting from a gain in fair value of assets. organic.

Cash provided by operating activities increased 60% to $ 800 million, largely due to reduced cash consumed in working capital.

Capital expenditure totaled ZW $ 398 million, of which ZW $ 160 million was for root replanting.

As of September 30, 2021, the company had a net cash balance of ZW $ 900 million.

“In view of the positive financial performance of the company for the six-month period ended September 30, 2021, the Board of Directors declared an interim dividend of $ 1.08 per share for the year ended March 31, 2022 payable under all common shares of the company. business.

“This dividend will be payable in full on or around January 7, 2022 to all Shareholders of the Company of record at the close of business on December 24, 2021,” added Dube.

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