Total revenue for Zambia Sugar PLC for the year ended 31st August 2018 was K2.4 billion, K1.4 billion above the comparative period whilst operating profit ended at K388 million compared to K263 million achieved in the year ended August 201 7.
Finance costs in the reported period were K243 million compared to K152 million in the previous year reflective of the stable interest rates and Bank of Zambia monetary policy rates.
According to a media report posted on Lusaka Stock Exchange (LuSE), headline earnings for the year ended August 201 8 increased by 71% % to K153 million and headline earnings per share increased from 28.1 to 48.2 ngwee per share.
Zambia Sugar Plc Company Secretary Mwansa Mutimushi says the increase in earnings is due to the comparable period to 31 August 2017 being a 5 month period following the change in the company’s year – end to August.
Ms Mutimushi says the company has continued to be a significant provider of employment, with an average workforce of 4, 456 during the year with numbers peaking at 6, 427 .
“Cane delivered to the factory across the two growing seasons was 2,909 million tons resulting in sugar production of 351 050 tons. The 2018 cane yields are performing at an estimated 120 tons cane per hectare which is 4% above the previous season. The cost reset project called Project 400 implemented by management resulted in some significant savings in particular the voluntary separation program that was launched in the last half of the year with the aim of reducing manpower costs,” said Ms Mutimushi.
She discloses that sugar production for the March 2019 season is expected to exceed the March 2018 seasonal production.
She adds that the positive performance in the domestic market, experienced in the second half of the year, is expected to continue, and reflects measures management has taken to protect market share.
Ms Mutimushi says management remains resolved towards maximising production, lowering the cost base and reducing debt levels within the business.
“Growth is expected to continue in the regional export markets although margins will remain under pressure from low global sugar prices,” she said.