By Shaffie A Mtambo
Illovo Sugar Malawi, a leading sugar producer listed on the Malawi Stock Exchange, has reported a significant decline in its financial performance for 2024.
The company’s profit after tax plummeted by 50% to K23 billion, down from K56.7 billion in 2023.
The decline in profit has had a ripple effect on the company’s dividend payout, which has dropped to K5 per ordinary share for the period, a significant reduction from K25 per ordinary share in 2023.
This news is likely to disappoint investors who had grown accustomed to the company’s generous dividend payouts.
According to Interim Managing Director Kondwani Msimuko, the decline in profit can be attributed to natural disasters that resulted in the loss of thousands of tonnes of sugarcane.
Msimuko acknowledged investors’ concerns over the drop in dividends and assured them that the company is taking proactive steps to mitigate future risks and sustain profitability.
Despite the challenges faced by Illovo Sugar Malawi, the company remains committed to delivering value to its shareholders. Msimuko expressed his confidence in the company’s ability to bounce back from the current challenges and emerge stronger in the long run.
