By Steven Godfrey Mkweteza.
Despite calls for Illovo sugar Malawi plc to consider reducing the price of sugar in the country, the company says it sees no reasons to reduce the price.
Managing director for the company, Lekani Katanda told journalists in Blantyre today when the company was presenting it’s financial performance for the half year ended February 2023.
Katandula said the price of sugar in country was fairly cheaper as compared to other neighbouring countries, hence no need for reduction.
“If our sugar prices are high, then why do cross boarder traders buy our sugar in large numbers and resell them to other neighbouring countries at a higher margin? Asked Katandula.
According to Katandula, reducing the price of sugar in the country will bring about the scarcity of the commodity because traders will buy them in large numbers and resell them in the neighbouring countries where the prices are high as compared to Malawi.
On his company’s’ financial half year performance, Katandula reported that the company grew profit of after tax from MK9.2 billion in 2022 to MK33.7, representing 266 percent increase.
Katandula indicated that the total revenue for the company free from MK92.0 in 2022 to MK116.7 representing 27 percent increase.
He added that the companys’ operating profit recorded MK49.1 billion from MK14.2 billion in 2022 representing 246 percent increase.
However, Katandula, who attributed the strong performance to market centric, reported that his company recorded a drop in total production during the half year ended.
Among other revenue growth strategies for the company, Katandula reported that his company was in discussion on Power purchase agreement with ESCOM so as to start selling the power utility power energy.
Commenting on the half year performance of the country, Lovemore Tinto, a shareholder of the company, said he was impressed with the performance as compared to other listed companies.
Tinto particularly mentioned the increased share price from 200 to 1000 and the dividends payouts as some of the positivities.
Illovo sugar Malawi plc is a Malawi stock exchange listed company which operates in seven different countries across the world.
