OWN CORRESPONDENT, Johannesburg | Thursday 12.00pm.
SUGAR giant Illovo Sugar faces a tough year despite pushing production to fresh record levels and an anticipated rise in world sugar prices, managing director Don MacLeod said on Wednesday.
Analysts said the group has performed according to market expectations, lifting their headline earnings per share 4% in the year ending March 31 to 90,1c from 86,7c.
The group released proforma results because it has changed its year end from September 30 to March 31 to coincide with the sugar season of its African operations after it was unbundled from parent CG Smith in February this year.
”It will be a tough year. Operationally we will improve, but because of the interest and because we don’t have the benefit of the deferred tax rate reductions last year in South Africa and in Mauritius makes it difficult,” Macleod said.
MacLeod said there are fears that South Africa might increase its interest rates to protect the rand if there is continued weakness in the currency.
Illovo’s borrowings total R1,468-billion.
Good growing conditions in southern Africa, where the group has interests in Swaziland, Malawi and Mozambique, and good rainfall could lift cane output expectations. — Reuters