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.
“The substantial increase in net finance costs, rising to K127 billion from last year’s K46 billion, impacted materially on profit for the year. The prior year figure was reduced by the recognition of exchange rate gains of K93 billion on US dollar denominated borrowings.
“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.
“ Financing costs before accounting for currency exchange differences decreased year on year, from K139 billion to K121 billion,” he said.
He 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 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.
“Combined with deliveries from Zambia Sugar’s supplying out growers, total cane throughput amounted to 3.1 million tons, representing a 19 percent increase compared to the previous year,” he said.
And the Zambia Sugar Board Chairman has disclosed that the company exported a record 233 000 tons of sugar to the European Union (EU) and regional markets combined compared to 175 000 tons that were exported to the same regions last year.
He 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.
ZANIS
While a poor man in a typical village is crying for high prices of sugar, you are busy enjoying the income. The development should be seen in all angles. What are the customs saying about your product on the market????
Let the Nakambala sugar employees get good working conditions.There should be real benefits from this type of fruit bearing.
#2 Michaelme
Good contribution. I was holidaying in Mazabuka from 01-20.2011 what I saw there is little/no difference from 2007 the last time I was there. No improvement in road nextwork, thats road going from Namboard to Nkabika was closed cos of deplorable conditions. running water destroyed the surface.. Mazabuka is being milked of its sugar production leaving the area impoverished. no action has been taken to eradict the mosquitoes that has claimed hundreds/thousands of lives per year.
Good report, but the company lacks good corporate image. For many years people have complained about the conditions of service for the workers and even those who do business with the institution.
.. from 1-20.7. 2011
good to hear this piece of info.
Indeed gud information abt the company ad its huge profits.The BIG question for Zambia Sugar .Is it ploughing back to Mazabuka resident?. The answer is a BIG NO.ZS can mangage to tar all the roads in Mazabuka in different township and make it a beautiful town.Bt all the huge profits jst go out Zambia. Its not only abt employment.Shame mother Zambia why such companies?
There is nothing to be proud of.That company has been in Mazabuka since time memorial and yet they have nothing to talk about in terms of community involvement except for a football team that is in and out of the premier league.Look at the state of the primary schools or roads where their workers reside,it ‘s pathetic.They must sow back part of its profits to the community.
The district council is equally to blame.They must introduce toll fees for all those heavy duty trucks that come to collect the sugar and molasses and use the money to improve township roads.
They pay tax don’t they?? K17 billion worth of axes were has that money gone?? the money was used to resurface roads in Lusaka, and getting Mobile hospital as well, do not shift the blame on Zambia sugar plc they are in the business of making money and maximizing shareholder returns PERIOD. They are under no legal obligation to resurface any roads and NO don’t even try to play the moroal card.. it just wont fly. after 10 years in the corporate world i have come to realised that morals count for nothing in business. introduce a social responsibility tax or preferably a public score mechanism, were companies are forced to invest in communities. Companies that score less should have a slightly higher tax. AND PLEASE it is not Zambia Sugar Plc’s job to resurface roads in Mazabuka!!!
Ba Zedi, you are absolutely right. No one should be blaming Nakambala Sugar as its not their responsibility to provide public infrastructure and services.
There is more that the Council can do. On its part Central government should be ploughing back some of the local taxes, which I guess, are from other farms and the Munali mine into Mazabuka. That said the government has recently began to resurface roads across the towns and cities. I wonder what the plans are for Mazabuka?
It’s good profit but what they pay their share holders is pea nut. Let them improve on that and not just praising themselves for good profits. they should remember that they are partly using investors money.
What is the email address of the company. We need better interaction. To cut the long story short I want to apply for an attachment