HARARE, November 21 (The Source) – Hippo Valley Estates on Wednesday said its net profit rose fourfold to $5,6 million in the six months to September from $1,4 million in the comparable period last year.
This was despite a 12,6 percent decline in revenue to $72,4 million compared to $82,9 million in the comparable period last year due to a late start to the season.
“Sugar production for the period to September 30 amounted 140,174 tons compared to 155,552 tons for the same period last year, a decrease of 10 percent. This was due to late start of the milling season and the resultant lower cane deliveries to the mill over the six month period amounting to 1,081,432 tons compared to 1,165,432 tons delivered in the same period last year, a decrease of 7 percent,” chief executive, Sydney Mtsambiwa said in a statement.
Hippo Valley, a local unit of South African sugar processor Tongaat Hulett, reported a 105 percent increase in operating profit to $8 million from $3,9 million in the same period last year.
Finance costs fell to $1,5 million from $2,3 million in the same period last year.
The company reported a net cash position of $204,000 compared to a net debt position of $12,2 million in the same period last year.
Current dam levels will provide for full irrigation during 2017/18 season,leading to a significant crop recovery by 2018/19.
“Based on a full irrigation regime, the agricultural improvement initiatives and the accelerated planting programme now underway, total industry production is expected to reach between 502,000 and 517,000 tons in 2018/19,” Mtsambiwa said.
The company did not declare a dividend.