Rédaction Africa Links 24 with Johanne Prosper
Published on 2024-02-24 04:30:32
Miwa Sugar has achieved a positive performance for the six months ending December 31, with a revenue and net profit of USD 117.3 million and USD 30.4 million respectively. EBITDA stood at USD 59.8 million, representing a 51% margin, demonstrating the strong potential for cash generation from underlying activities. “This performance reflects our commitment to increased operational efficiency and prudent financial management,” says Javesh Boodnah, Chief Financial Officer.
Operations in Tanzania contributed to revenue of USD 50.6 million, while operations in Kenya generated USD 66.7 million. The results highlighted the efficiency of TPC Ltd in achieving excellent margins on its revenue. As for Transmara Sugar Company Ltd (TSCL), substantial investments have paid off, ensuring a constant availability of sugarcane and sustained crushing capacity, allowing TSCL to fully benefit from favorable price conditions in the country.
After a record year, the Tanzanian subsidiary recorded a slightly lower sugar production, mainly due to above-normal rainfall (El Niño) coupled with a breakdown at the sugar mill. Financial results remain strong with a 10% increase in revenue.
The continued progress of TSCL in Kenya has led to excellent results, with an increase in the amount of crushed sugarcane and sugar produced and sold. With national sugar supply in Kenya remaining limited, the low availability of sugarcane in regions other than Transmara has led to a significant increase in sugar prices during the period compared to last year, significantly improving TSCL’s revenue and profitability.
In the second half, both sugar mills are expected to continue to record positive results. In Kenya, TSCL’s production will remain stable compared to the reference period, while a return to normal prices in the local market is anticipated.
In Tanzania, the breakdown at the sugar mill will impact production, which will be lower than last year. Nevertheless, “despite the challenges faced, Miwa Sugar Ltd has demonstrated its resilience and ability to generate value for our shareholders,” says Stéphane Isautier, group CEO. “It is with this in mind that we acquired the remaining 24% of the minority stake in TSCL in October 2023, now holding 100% of the capital. We remain committed to continuing our growth and exploring new opportunities in the region while diversifying our sources of revenue.”
As a key player in the sugar industry in East Africa, Miwa Sugar’s mission is to create value responsibly in Africa through operational excellence, community empowerment, and effective strategic partnerships. Two companies form the basis of Miwa Sugar’s success: TPC Ltd in Tanzania, and Transmara Sugar Company Ltd in Kenya. Owned for over 23 years, with 8,000 hectares of sugarcane, TPC Ltd has implemented world-class sugarcane farming techniques, producing 115,000 tons of sugar per year. Transmara produces 100,000 tons of sugar annually in Kenya, relying on its close ties with 17,000 sugarcane growers.
Read the original article(French) on Le Mauricien
