ZAMBIA SUGAR PROJECTS INCREASED BENEFITS FROM INVESTMENT IN NAKAMBALA

Zambia Sugar PLC Board Chairman Graham Clark says the substantial capital investment his company has injected in sugar operations in his company’s Nakambala Sugar estate have started bearing fruit.

Mr Clark said the company has in the past year seen both production and sales records exceeding previous records.

ZANIS Business reports in Lusaka, yesterday, that a record sugar production of 385 000 tons and a 23 percent rise in total sales for the company has increased revenue to K1, 232 billion.

The Company’s operations profit to K174 billion as compared to K908 billion and K159 billion respectively recorded last year.

Mr Clark has however stated that a significant increase in net finance costs reduced profit before tax to K47 billion from K66 billion in the previous year.

Zambia Sugar PLC Board Chairman said the taxation of K17 billion resulted in profit after tax decreasing from last year to K30 billion.

Mr Clark says the substantial increase in net finance costs, rising to K127 billion from last year’s K46 billion, impacted materially on profit for the year adding that in the year before, the figure was reduced by the recognition of exchange rate gains of K93 billion on US dollar denominated borrowings.

He has added that this was not repeated in the current year and these borrowings were refinanced in local currency during 2010/11 to remove the risk of future exchange rate fluctuations.

Mr Clark has further explained financing costs before accounting for currency exchange differences decreased year on year, from K139 billion to K121 billion.

He has also stated that agricultural operations, including Nanga Farms, produced a record 1.97 million tons of cane in the 2010/2011 season, representing a 16 percent increased compared to the previous season.

He has however said wet weather in the early and latter parts of the season affected cane harvesting operations, adding that as a result 900 hectares of cane land were carried over for processing in the 2010/2011 season.

And the Zambia Sugar Board Chairman has disclosed that the company exported a record 233 000 tons of sugar to the European Union and regional markets combined compared to 175 000 tons that were exported to the same regions last year.

Mr Clark has also revealed that the sugar company has this year spent a total of K39 million on the refurbishment and overhaul of the factory plant and machinery to ensure the factory is kept in sound condition and is adequately protected against breakdown in a bid to ensure that the final product meets global quality standards.