MHLUME - The Royal Eswatini Sugar Corporation (RESCorp) says it remains firmly on course to achieve its ambitious target of generating E2 billion in net profit by 2030.
This is despite current market pressures and operational challenges affecting the global sugar industry.
This assurance was given by the company’s Managing Director, Nick Jackson, during a media engagement held at the corporation’s Mhlume estate on Friday, where editors from various local media houses were briefed on the company’s strategy, operations and long-term outlook.
Jackson said while the E2 billion profit target may appear distant, given the company’s current earnings trajectory, the corporation is confident that its diversification strategy and expansion into new sectors will significantly strengthen its profitability in the coming years.
The profit aspiration forms part of the company’s new corporate strategy titled ‘Simama Wenabe +2B 2030,’ which sets the direction for RESCorp’s next strategic cycle.
Jackson explained that the strategy aims to transform the corporation from being primarily a sugar producer into a diversified agro-industrial and energy business.
“The E2 billion target is ambitious, but we remain optimistic. The diversification initiatives we are pursuing, including ethanol derivatives, renewable energy and other agricultural ventures, will play a major role in getting us there,” he said.
The new strategy succeeds the previous Simama 20-25 strategy, which concluded with the 2025 financial year.
According to the company’s integrated report, the Simama Wenabe +2B aspiration is centred on two key pillars: Improving profitability while expanding into sustainable new revenue streams.
The Simama component focuses on maximising profitability by driving significant revenue growth and aggressively reducing unit costs across the business.
Meanwhile, Wenabe emphasises sustainability and diversification beyond sugar by exploring high-value opportunities in ethanol derivatives, while also establishing a scalable energy business.
The strategy is an outcome of a vigorous strategy definition process, which began with a comprehensive assessment of both the internal and external environments, as well as a series of strategy definition workshops aimed at establishing the organisation’s strategic goals.
A strategy execution maturity assessment was also conducted, resulting in simplification of the strategy execution process and tools. The strategy has been successfully cascaded to divisional strategies, ensuring alignment across all levels.
The corporate strategy has been built upon the foundation of the previous strategy, Simama 20-25, which was focused on reducing the unit cost of production, creating an enabling environment for diversification, as well as building an ideal organisational culture for a sustainable company.
Against the backdrop of key challenges like adverse weather conditions, upsurge in pests and diseases, increased input prices due to geopolitical instabilities, as well as fluctuating market prices, the company still managed to thrive.
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