SUGAR producer Tongaat Hulett recorded an eight percent decrease in revenue owing to a reduction in sugar production from 229 000 to 197 000
However, the slump in revenue was mitigated by a 27% increase in operating profit to US$17m from US$13.4m in prior year attributable to improved margins on the back of favorable sales mix, combined with a positive swing in standing cane valuation.
Profit for the year was US$11m from US$7.7m while operating cash flow was US$32.3m a decrease of US$5.6m in line with the reduced revenue.
The company said the completion of the Tugwi-Mukosi dam had resulted in the accelerated implementation of the cane plough out and replanting programmes due to the guaranteed water supplies.
Further the company said the protection extended to the industry from cheap imports was successful as the company had averted job cuts.
“The timely intervention by the government to protect the industry against competition from dumped world market imports continued to yield positive results in addition to providing job security in the. Total industry exports to the US and regional markets decreased to 58 000 tons due to decreased production a decrease of 95 000 tons due to decreased production and increased local market sales”.