SALIENT FINANCIAL
FEATURES 2016/17

THE RESULTS FOR THE YEAR ENDED 31 MARCH 2017 SHOW

  • an improvement in sugar revenue and operating profit under difficult conditions
  • starch operations negatively impacted by maize costs that traded at import parity levels as a result of the past seasonís drought
  • sales concluded in land conversion and developments lower than the prior year
  • operating cash flow, after working capital movements, advanced substantially

SUGAR OPERATIONS

  • Operating profit of R1,271 billion (2016: loss of R15 million)
  • Sugar production totaled 1 056 000 tons (2016: 1 023 000 tons)
  • Volumes impacted by low cane yields due to drought and poor growing conditions

STARCH OPERATIONS

  • Operating profit of R510 million (2016: R658 million)
  • Margins negatively impacted in the second half of the year by maize costs which were at import parity levels
  • Improved sales mix achieved by replacement of imported volumes with local production and ongoing market development, offset by lower volumes as the prevailing economic climate led to lower consumer demand

LAND CONVERSION AND DEVELOPMENT ACTIVITIES

  • The sale of 75 developable hectares resulted in operating profit of R641 million (2016: R1,115 billion from the sale of 121 developable hectares)
  • Negotiations on some 233 developable hectares are underway, representing profit potential of around R1,58 billion