Tongaat Hulett FY HEPS down 17.9%, revenue up 3.2%

According to its audited results for the year ending 31 March 2016, Tongaat Hulett Ltd saw a rise of 3.2% in revenue, to R16,676 billion (compared to R16,155 billion for the previous year), with operating profit down 13.5% to R1,808 billion (compared to R2,089 billion the previous year.) Furthermore, headline earnings are down 17.1% to R783 million, and headline earnings per share are down 17.9% to 678,1 cents. The company said in its SENS announcement:

"The results for the year ended 31 March 2016 were attained with record performances from the starch operation and the land conversion and development activities being negated by the impact of the substantial reduction in Tongaat Hulett's sugar production as a result of poor growing conditions… The benefit of improved import protection and higher prices in the various local markets was largely not yet reflected in revenue earned in the 2015/16 year due to the timing of the increases. In addition to lower sugar volumes, export revenues were also impacted by a lower international sugar price, with regional deficit markets and EU exports linked to that price."

The results further showed that cash flow from operations was down 50.2% to R1,262 billion (compared to R2,533 billion the previous year). Furthermore, annual dividend was down 39.5%, to 230 cents per share (compared to 380 cps previously).

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