Zambia Sugar Plc (LUSE:ZSUG), Zambia’s second largest sugar producer, has released its results for the six month period ending on September 30, 2014 indicating overall positive plant performance with a total sugar production of 314,000 tons and an increase of 6% in domestic market sugar sales to over 75,000 tons, of which 26,000 tons was supplied to industrial customers.
According to the financial report, sugar cane yields are stable and estimates indicate that the crop balance will fully supply the factory and also offers the potential of carry-over into the 2015/16 season.
Revenue from the six month period reported a 5% increase to ZMW 966 million with profit from operations also reporting an increase of 3% to ZMW 149 million.
In line with high local interest rates, finance costs reported a 12% increase to ZMW 75 million, resulting in a 6% decline in after-tax profit to shareholders to ZMW 62 million.
The report went on to indicate that, while exports to regional markets and to the EU were lower than the previous year, conditions for domestic market sales are expected to remain favorable and regional demand is projected to increase as opportunities are exploited.
“Sugar production for the full year is expected to exceed the previous record, dependent on late season weather condition,” reads commentary from the recently published report.