Illovo earnings to slump

Illovo Sugar expects a decline of as much as 85 percent in earnings per share for the six months to the end of September.

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Cape Town - Illovo Sugar warned on Friday it expected a decline of as much as 85 percent in earnings per share for the six months to the end of September.

Africa’s biggest sugar producer said headline earnings per share were expected to come in at between 68.4 cents and 85.5 cents, down from 171.1 in the prior corresponding period.

This is as it continued to struggle against the unhealthy combination of unfavourable weather conditions in South Africa, currency headwinds and low export sugar prices.

A steeper decline in earnings per share for the half year – of between 75 and 85 percent to between 42.8 cents and 25.7 cents – was the result of the decision to write-off the cost of development and registration of a chemical pesticide because of difficulties of getting approval from the US Environmental Protection Agency for use on food crops.

The full results are expected by November 30.

AFRICAN NEWS AGENCY