Tongaat Hulett: Trading Statement for the half-year ended 30 September 2013
Tongaat Hulett Limited
Registration number 1892/000610/06
Share code: TON
TONGAAT HULETT:  TRADING STATEMENT FOR THE HALF-YEAR ENDED 30 SEPTEMBER
The following trading statement is issued for the six
months to 30 September 2013.
Headline earnings are expected to increase by 1,2 to
R663 million for the half-year, compared to the R655 million earned in the same
period last year. Headline earnings per share for the half-year are expected to
be 592 cents per share (2012: 605 cents per share) while total net profit per share
is expected to be 632 cents per share (2012: 606 cents per share).
Operating profit is expected to be R1,381 billion
(2012: R1,290 billion), a 7 increase. The following are the major elements:
- Operating profit
from the various sugar operations totalling R684 million (2012: R967 million):
The sugar operations are
experiencing the pressure of significantly lower international sugar
prices, particularly for exports into the European Union, as well as
experiencing the impact of increased imports into the local Southern
African markets. This has affected the revenue earned and has led to the consequential
reduction in the standing cane valuation. The pricing pressures have added
impetus to the drive to reduce costs of sugar production, with substantial
reductions being achieved in the current season. Unit costs of production
are also benefitting as volumes grow. Tongaat Hulett’s overall sugar
production is continuing to increase this season and is expected to be at
the highest level in the past 10 years.
- Profit from the
land conversion and development operations increasing to R512 million
(2012: R246 million), with sales in the Cornubia and Umhlanga areas and a major
sale of land near the international airport, north of Durban.
- Profit from the
starch operations amounting to R232 million (2012: R147 million): Starch
and glucose margins benefitted from local maize costs being close to
international prices with good co-product realisations.
- A net charge of
R47 million is expected to be reflected for the centrally accounted and
consolidation items (2012: R70 million charge).
This trading statement is issued in accordance with
the JSE Listings Requirements. The above information has not been reported on
by the auditors.
The interim results for the half-year ended 30
September 2013 are scheduled for release on Monday, 11 November 2013.
4 November 2013
INVESTEC BANK LIMITED