SALIENT FINANCIAL
FEATURES 2017/18
THE RESULTS FOR THE YEAR ENDED MARCH 2018 REFLECTED:
- sugar operations were adversely affected by the dynamics of imports into the South African market,
low international sugar prices and the impact of stronger local currencies on export realisations
- starch and glucose operation improved operating profit in the second half of the year, benefitting from more competitive maize costs
- land conversion and development activities led to a number of sales in new markets and operating profit
which was in line with the previous year
Tongaat Hulett’s operating cash flow (after working capital) was R2,275 billion (2017: R3,176 billion)
Overall, the year reflected a net cash outflow after dividends of R1,324 billion (2017: R544 million inflow)
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STARCH OPERATIONS
- Operating profit of R572 million
(2017: R510 million)
- Margins benefitted from lower maize
prices, that traded closer to export
parity levels after the record crop of
16,8 million tons and were negatively
impacted by a stronger Rand
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SUGAR OPERATIONS
- Operating profit of R837 million
(2017: R1,271 billion)
- Total sugar production increased to
1 171 000 tons (2017: 1 056 000 tons)
- The price of raw sugar in the world
market remained under pressure during
the year
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LAND CONVERSION
AND DEVELOPMENT
ACTIVITIES
- The sale of 96 developable hectares
resulted in operating profit of
R661 million (2017: R641 million from
the sale of 75 developable hectares)
- Further investments were made
during the year into planning and
infrastructure that underpins future
sales, mainly in areas where sales
negotiations are underway or
enquiries are being received
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