Tongaat Hulett Limited reported operating results for the year ended March 31, 2015. The company's sugar production for the year has totaled 1,314 million tons compared to 1,424 million tons in the prior year. Sugar production in South Africa was 541 000 tons against 634,000 tons a year ago, Zimbabwe was 445,000 tons against 488,000 tons, Mozambique was 271,000 tons against 249,000 tons a year ago and the raw sugar equivalent in Swaziland was 57,000 tons against 53,000 tons a year ago. This follows the dry conditions in South Africa and, in Zimbabwe, production in the 2014/15 year that did not yet benefit from the new /replanting of cane that commenced with the dam levels having recovered early in 2014. In Mozambique, the local market was impacted by substantial imports which occurred prior to an increase in the reference price to protect against unfair import competition, which is expected soon.


The company provided earnings guidance for the year ended March 31, 2015. For the year, the company's operating profit from the various sugar operations is expected to total approximately ZAR 806 million against ZAR 908 million a year ago, a decrease of 11%. The benefit of cost reductions over the past two years together with the negative cane valuation effect recorded in the income statement last year not being repeated in 2015 was offset by a reduction in sugar production volumes and lower prices. Revenue was particularly impacted by a substantial reduction in prices for exports into the EU as a result of the changes to the EU agricultural markets. Operating profit from the starch and glucose operation is expected to increase by some 16% to approximately ZAR 560 million against ZAR 482 million a year ago, benefitting from further improvements in the sales mix, coproduct recoveries, capacity utilisation and plant efficiencies. Tongaat Hulett's operating profit is expected to decrease by some 12% from the previous best of ZAR 2,374 billion earned last year to approximately ZAR 2,089 billion, with strong cash flow from operations generated of approximately ZAR 2.5 billion. Headline earnings are expected to be approximately ZAR 945 million for the year, compared to the ZAR 1,106 billion earned in the previous year, a decrease of some 14,5%. Total net profit per share is expected to be approximately 865 cents per share against 1,034 cents per share a year ago while headline earnings per share for the year are expected to be approximately 826 cents per share against 990 cents per share, both reflecting a decrease of some 16.5%.