DELIVERING SHAREHOLDER VALUE
- The Tongaat-Hulett Group operating profit grew by
40% to exceed R1 billion for the first time with ROCE
increasing to 14,8%.
- Moreland’s fourth successive year of record breaking
performance with revenue increasing by 30% and
operating profit increasing by 41% to R325 million.
- Rolled products sales volumes increased by 6% to
183 000 tons annualised with Hulett Aluminium’s
revenue exceeding R5 billion for the first time and
operating profit increasing by 32% to R422 million.
- Earnings growth acceleration continued in sugar
operations with operating profit increasing by 42%
to R356 million including dividends of R61 million
received from Triangle in Zimbabwe.
- The Tongaat-Hulett Group Headline earnings
increased by 51% to R703 million in 2006.
- Annual dividend payment to shareholders increased
by 37,5% to 550 cents.
- Proposed unbundling and listing of Hulett Aluminium
- Broad based BEE partners selected for equity
participation in Tongaat-Hulett and Hulamin.
A PLATFORM FOR FUTURE GROWTH
- The R1,3 billion expansion of the Mafambisse and
Xinavane sugar cane estates and milling operations
was approved to take advantage of EU preferential
market access from 2009.
- European sugar reforms effective from July 2006
reduce EU sugar exports into the 40 million ton world
sugar market from 2007.
- Planning approvals for Izinga (Umhlanga Ridge) and
Kindlewood (Mt Edgecombe South) residential estate
property developments secured in December 2006.
- Two major international hotel developments to
commence in 2007:
- Marriot International Hotel at Umhlanga Triangle
- IFA’s 150 room, 5-star Fairmont Hotel and Gary
Player designed Zimbali Lakes Golf Course.
- A R950 million Hulett Aluminium expansion project
approved in the last quarter of 2006, growing capacity
to 250 000 tons and providing further mix
enhancement by increasing output of thin gauge foil
and heat treated plate.
- Acquisition of 50,35% share in Hippo Valley sugar
mill and estates in Zimbabwe for US$36 million.
- Continued focus on customer service results in two
customer service awards for African Products as the
best raw materials supplier in 2006.
- Huletts® again voted by an independent survey as
the top sugar brand and the second leading food
brand in South Africa.
- Agricultural trials for a starch based super absorbent
polymer result in yield and quality improvements
of up to 50% with larger scale trials for the 2006/7
summer crop growing season.
- The expanded aluminium heat treated plate facility
was commissioned on schedule in the third quarter
of 2006 and the first phase aluminium extrusion
capacity expansion was completed.
- Overhead cost increases in starch and glucose
operations contained below inflation for the third
consecutive year as organisational restructuring
initiatives take effect.
- Commercial production from the new white sugar
technology plant at Felixton.
- Following successful trials of silo bag storage for
maize in the 2005/6 season Afprod has increased
storage to 60 000 tons for the 2006/7 season.
- Continued sales mix improvement with local rolled
products and extrusions market volume growth of
11% and 15% respectively.
- Total BEE preferential procurement spend increased
to R919 million and 28% of the total available spend.
- Blacks in management represent 49,3% of
permanent staff at this level with 81,5% of skilled
and supervisory positions comprising black
- Corporate Social Investment spend amounted to
R6,8 million in 2006.
- The total lost time injury frequency rate improved
to 0,21 in 2006 from 0,31 in 2005 and 1,27 in 2003.
- All South African and Swaziland sugar operations
achieved ISO 14001:2004 certification.
- 70% of the South African based employees
participated in Voluntary HIV Counselling and
- Bridge City, an exciting public private partnership
with the eThekwini Municipality, to be launched to
the market early in 2007 as a mixed use town centre
development serving the KwaMashu area northwest