Tongaat Hulett's profits drop by 30 percent
The company also expects operating profit to be 15 percent lower than last year.
Sugar producer Tongaat Hulett has said it anticipates that its full-year profits will drop by around 30 percent, while its operating profit is expected to be at least 15 percent less than the R2.33 billion reported a year ago. This because of higher-than-expected sugar imports into its South Africa operations.
Tongaat Hulett said in a trading update:
“The South African sugar operations experienced higher than anticipated import volumes into the local market as a result of inadequate duty protection that prevailed for a period… The displaced locally produced sugar was exported in the latter part of the year and was impacted by lower world prices and a stronger currency."
The sugar producer has operations in South Africa, Zimbabwe, Mozambique and Swaziland.