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MBABANE – Tibiyo TakaNgwane raked in 20 per cent more revenue for the financial year ended April 30, 2016.

Managing Director Themba Dlamini has reported that despite the adverse trading conditions, Tibiyo saw an increase in revenue from E199 million in 2015 to E239 million in 2016. Dlamini attributed the positive growth to dividends received from investee companies. The total amount of money received as dividends as reflected in the report was E188.5 million, an increase from E74.8 million received the previous year. 


He said some of the investee companies especially in the sugar industry had been able to counter the drought effects by adopting strategies that minimised the impact of the unprecedented El Nino drought on budgeted profits which was commendable. Tibiyo TakaNgwane investments include but not limited to, Dalcrue Agricultural Holdings, Inyoni Yami Swaziland Insurance, Royal Swaziland Sugar Corporation, Ubombo Sugar Limited, Bhunu Mall, Nedbank Swaziland, Simunye Plaza, The Swazi Observer, Tibiyo Properties, Maloma Colliery, Parmalat Swaziland, Swaziland Beverages and Swazi Spa Holdings. The organisation’s total assets grew from E1.7 billion to E1.8 billion signifying growth of seven per cent. “As sugar accounts for a major portion of Tibiyo’s revenues, it is of paramount importance to monitor performance of the industry and its developments thereof,” Dlamini emphasised. Dlamini mentioned that according to the Swaziland Sugar Association (SSA), in the reporting period, sugar production increased by 1.3 per cent from 686 778 tonnes to 695 410 tonnes, while sales revenue grew by 12 per cent from E4.1 billion to E4.6 billion.
He said the increase in revenues was mainly due to an improvement in the average selling prices and increased sales volumes.

It was explained that molasses production increased by 1.7 per cent from 262 957 tonnes to 297 390 tonnes. In terms of the short term outlook for the industry, overall sales revenues were expected to increase by 2.5 per cent as a result of favourable sugar prices. Preferential access into the EU and USA markets and effective protection in the domestic Southern African Customs Union (SACU) market would guarantee sustained value of the sugar industry. In the short term, Dlamini said sugar production was initially projected to decrease by 25.5 per cent; however, there were improvements which led to a revised forecast production reduction of 15.6 per cent. “To counter the drought, the sugar industry embarked on strategies that focused on adequacy of water shortage and harvesting infrastructure complemented with optimum irrigation systems. These will continue to be the major focus of industry activities going forward,” Dlamini advised.

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