RSSC OWNERS’ INCOME DROPS 47.5%

MBABANE - Total comprehensive income attributable to the owners of RSSC amounted to E270.4 million.

This was 47.5 per cent lower than the results achieved for the period to September 2017 as reported by Chairman AT Dlamini and Managing Director (MD) Nick Jackson in interim financial results for the six months ended September 30, 2018. According to the company’s official website, as at yesterday, the shareholders of RSSC are: Tibiyo TakaNgwane (53.1 per cent), RCL Foods (29.1 per cent), Nigerian Government (10 per cent), Eswatini Government (6.5 per cent) and unnamed individuals (1.3 per cent).

Explained

It was explained that the decline in profitability was due to a number of factors which included: a lower 96 Pol sugar price as influenced by a lower world market sugar price and lower Southern African Customs Union (SACU) market prices; higher electricity costs following a period of unavailability of generation equipment at the Simunye mill; and higher operating costs due to above inflation cost increases. “The consolidated statement of financial position of the group shows a strong balance sheet with total assets of E3.3 billion. “Phase one of the Integrated Growth Programme (IGP) was funded through a facility which sees RSSC enter a period of debt funding,” explained RSSC.

It was mentioned that the financial ratios show a significant decline when compared to the last year, underpinned by the challenging sugar and ethanol market conditions. In terms of outlook, it was pointed out that crop performance was expected to result in record or close to production levels for cane and sugar. “Unfortunately, this achievement will be overshadowed by lower sugar prices for the current season. Consequently, profits for the 2018/19 financial year are expected to be lower than those posted for the 2017/18 financial year,” RSSC projected.

The entity reported that cane crushed at 2.4 million tonnes, was five per cent higher than cane crushed in the same period last year. This was reportedly despite the late start at the Mhlume mill to allow for the commissioning of first phase of the IGP which entailed the expansion and modernisation of part of the mill. Estate cane yields were significantly higher at 113.4 tonnes of cane per hectare (tc/ha) compared to the drought affected 96.2tc/ha for the same period last year. “Excellent mill performance has resulted in improved cane throughput for the season to-date,” said RSSC.

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