By Saidi Winnes
ILLOVO Sugar Malawi says it expects that medium-term agricultural operations and yields will improve following recovery from the impact of Cyclone Ana.
It, however, says in the short term reduced power supply from Electricity Generation Company (EGENCO), following the damage to Kapichira Hydro-Electric plant is anticipated to adversely impact operations.
In its unaudited financial statements for the six months ended 28 February 2022 co-signed by MD Lekani Katandula and Chairman Gavin Dalgleish, the leading sugar producer says a return to better weather patterns and the benefits of drip irrigation are expected to further support the agricultural yield improvement programs.
Katandula and Dalgleish state: “It is expected that medium-term agricultural operations and yields will improve following recovery from the impact of the cyclone. In the short term, reduced power supply from EGENCO following the damage to Kapichira Hydro-Electric Power Plant is anticipated to adversely impact operations.”
“However, a return to better weather patterns and the benefits of drip irrigation are expected to further support the agricultural yield improvement programs. Following the successful off crop maintenance program, additional focus on optimal factory recovery and preventive maintenance should enable both plants achieve better throughput for the rest of the year.”
Illovo sugar also says Inflation, bank interest rates and exchange rates for the Malawi Kwacha against major trading currencies will continue to have a notable impact on profitability for its business.
Katandula and Dalgleish, nonetheless, say the Group will continue to apply significant effort at cost reduction, operational efficiency, and sales growth in the interest of continued increase in profitability and a marked contribution to a thriving Malawian community.
“The business will continue to invest in commercial and logistical operations through commendable product and service quality, direct delivery of sugar to the end consumer, refinement of approaches to the very challenging deep water and other export markets, marketing promotions and other sales activation initiatives as it tries to maximize value for all its stakeholders.”