RSSC INCOME DROPS BY 23.5 PER CENT

MBABANE – The Royal Swaziland Sugar Corporation (RSSC) has recorded a 23.5 per cent lower income to stand at E301.2 million at the end of the 2017/18 financial year. 

Chairperson of the Board of Directors Absalom Themba Dlamini reported that the decline in profitability was due to a number of factors which include a lower world market sugar price.

Trading

A firmer Lilangeni against major trading currencies and lower Southern African Customs Union (SACU) market prices were also cited as contributing factors to the decline.
“The outlook for 2018/19 sugar prices resulted in a decrease in the fair value of standing cane at March 31, 2018,” said Dlamini.

Consolidated

The managing director (MD) of Tibiyo TakaNgwane explained that despite the drop, the consolidated statement of the financial position of the group showed a strong balance sheet with total assets of E2.9 billion.
He stated that phase one of the Integrated Growth Programme (‘IGP’) kicked off with the expansion and modernisation of part of the Mhlume mill.

He disclosed that these works would be completed prior to commencement of the 2018/19 crushing season.

Decline

“The financial ratios show a general decline when compared to last year but still show good returns,” said Dlamini.
Dlamini also said the 2017/18 season saw RSSC continue to recover from the drought.

Cane crushed at 3.2 million tonnes, was seven per cent higher than cane crushed in the same period last year. Sugar production was higher at 435,763 tonnes, 96° pol sugar, as compared to 400,102 tonnes, 96° pol sugar, for the same period last year.

Distillation

“Ethanol production at 25.5 million litres was 20.9 per cent lower than the production in the same period last year due to the unavailability of distillation plant number two following an explosion incident in July 2017,” added Dlamini.

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