Malawi: Illovo Sugar Half Year Net Profit Down By K11 Billion Against Last Year's Performance


At its Investors' Forum on Wednesday, Illovo Sugar Malawi Plc disclosed that they have recorded a 2024 half year net profit of K22 billion, which is down by K11 billion against last year's performance in the same period.

This was announced by Finance Director, Kondwani Msimuko, saying half year revenue is at K139 billion -- up by 22 billion last year in the same period while operating profit is at K29 billion, also down by K20 billion.

Net cash holdings is at K54 billion, up by K44 billion while foreign payables at K90 billion, up by K63 billion.

The challenges on performance included effects of natural disasters such as that of Cyclone Freddy on the cane fields; the state of the Malawi foreign currency and theft of Illovo's irrigation equipment and its sugarcanes by the surrounding communities.

Msimuko said they are currently in the process of enriching the soils of the company's canefields which were affected by Cyclone Freddy.

The company also embarked on a huge footprint in as far as influencing traders to sell sugar at recommended prices by turning shipping containers as distribution centres targeting rural areas -- as well as making door-to-door sugar deliveries to traders.

On theft of irrigation equipment and sugarcanes, the company assured that it is working hand in hand with traditional leaders to discourage the malpractice as well as being in sync with Nchalo Police Station.

Chairperson of the company's Board of Directors, Jimmy Lipunga said Nchalo Police Station needs to be strengthened and Illovo shall play a part in such an investment.

Meanwhile, the company made some huge investment in community projects where it spent K2.106 billion in education (K354 million); economic empowerment (K212.1 million); infrastructure (K461 million); natural disasters (K778 million); potable water (K260 million) and others at K41.1 million.

Its total contribution towards Malawi University of Science & Technology Endowment Trust is now at K400 million following initial payment of K150 million targeted towards female students in science, technology, engineering and mathematics (STEM).

It was announced that 194 students started benefitting from the entire fund through tuition, accommodation and food assistance from May 1, 2024 and the company also held career talks at eight secondary and primary schools, and five universities across the country.

Along with the career talks, Illovo donated a wide array of textbooks, including teachers' and learners' guides, with a focus on STEM subjects and from the exercise, a mentorship program was established with one of the Universities to connect their final year students with Illovo' leaders.

Also in support of the community, under the banner 'Creating a Thriving Community', is the Illovo Women in Leadership (I.WIL) Forum, which piloted a Menstrual Cups initiative with 45 women across the 3 sites to improve women's Menstrual health and hygiene, saying more women will be added.

And in partnership with Primark (UK), Malawi will pilot the Period Panties provided by Primark to 300 women in Illovo's business and the community to alleviate period poverty.