Lekani Katandula, the Managing Director for Illovo Sugar Malawi, disclosed the good tidings on Friday at Mount Soche Hotel in Blantyre during a Stakeholders meeting.
He attributed to the sharp increase in net profit to good cost structures and favorable weather condition for producing sugar canes.
“The profitability in the past six months has gone up by 200 percent from profit after tax of MK 2 billion kwacha to nearly MK 6 Billion,” said Katundula
One of the Illovo Sugar shareholders Frank Harawa commended the company for doubling the profits and sharing the divides despite the Covid pandemic which has forced most of the companies to shut down.
Illovo Sugar Malawi plc is listed on the Malawi Stock Exchange with 76% of the issued share capital held by the Illovo Group and the balance by public and other institutional investors.
The company annually cultivates around 1.8 million tons of cane which together with approximately 350 000 tons produced by Malawian smallholder farmers, results in the production of about 250 000 tons of sugar.