Tongaat Hulett's profits drop by 30 percent

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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.

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