Malawi’s oldest sugar producing company, Illovo sugar Malawi plc has described the year ended December 2023 successful, having posted a net profit of MK56.8 billion.
Speaking during the Malawi stock exchange (MSE) listed firm’s annual general meeting in Blantyre, board chairperson for the company Jimmy Lipunga said the company and it’s shareholders are happy with the financial performance achieved in 2023.
Lipunga said the growth in the financial year surpassed the MK26.6 billion which the company registered in the year 2022.
Lipunga attributed the successful growth to intensified marketing, pick up of the business post-covid pandemic era, good management and dedicated staff among others.
“Our strong business is coming from the reception we are getting from our clients, dedicated start and the trust in the brand, ” said Lipunga
He said the net profit could have been higher had it not been for challenges such as weather and economic related shocks which resulted into high inflation rate, devaluation, cholera and cyclone Freddy.
“Despite the successful story, the also on the other hand come with some hitches that the business had to navigate. These included the high levels of smuggling of our products to other countries, he said
According to Lipunga, the high levels of smuggling was due to the low pricing of the commodity in the country as compared to the neighbouring countries.
While expressing optimism for continued growth of the business going forward, Lipunga said the economic outlook for the year looks challenging due to the weather related shocks.
However said the company will put in place mitigating measures to weather storm to ensure the company is on the right trajectory of good performance.
Among others, the chairperson maintained plans for the company to venture into shire valley transformation project which he said has potential for cotton production and other crops for diversification and forex generation.
During the year under review, the firm’s share price grew from MK500 with a market capitalisation on MK356.72 billion. The share price jumped to over one thousand kwacha while the market capitalisation had appreciated to MK800.07 billion.
The company also recorded an increase in dividends payout from previous over thirteen million to eighteen million, representing a 34 percent increase.
In a separate interview, minority shareholders of listed companies general secretary Frank Harawa expressed concern over the safety of the company, saying the company was losing huge sums of money to theft of the properties.
Harawa urged the firm’s board and management to find ways to curb the malpractice.
Illovo sugar Malawi plc started it’s operations in the country over 50 years ago.
