ZAMBIA – Zambia Sugar Plc, Africa’s largest single-mill cane sugar producer, has announced a 29 percent increase in revenue, reaching K7,530 million (US$278.1M) for the financial year ending August 31, 2024, up from K5,827 million (US$215.2M) in the previous year.
The company attributes this growth to increased domestic sales, improved price realization, and cost dilution from a rise in production volume, even as inflationary pressures impacted input costs.
Operating profit surged by 106 percent to K2,567 million (US$94.8M), compared to K1,248 million (US$46M) the previous year.
Profit after tax rose by K1,122 million to K2,058 million (US$76M), bolstered by revenue growth and a 3.8 percent decrease in the effective tax rate, stemming from higher agricultural profit, which is taxed at a 10 percent rate.
Domestic sales volume increased by 26 percent, driven by a record production volume of 425,000 tons, a 15 percent jump from the previous year’s 368,000 tons.
The company indicated that this production milestone enabled it to meet a significant rise in domestic demand. As a result, export sales volume fell by 41 percent, though export price realizations increased by 43 percent.
Following these strong financial results, Zambia Sugar Plc’s board has proposed a dividend of 161 ngwee per share, pending approval at the upcoming Annual General Meeting scheduled for November 28, 2024.
Additionally, Zambia Sugar Plc has announced that Roseta Chabala will assume the role of Chairperson of the Board of Directors effective February 28, 2024, following the resignation of Norman Mbazima.
Zambia Sugar Plc, a subsidiary of Illovo Sugar Africa, is owned by Associated British Foods and listed on the Lusaka Securities Exchange.
The company employs over 6,385 people directly and 4,774 indirectly, contributing significantly to Zambia’s socio-economic landscape through various economic and environmental initiatives.
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