Tongaat Hulett’s ailing fortunes in recent years appear to be on a trajectory of recovery, judging by its recently released interim financial results for the first half-year ended September 30, 2020 (H1 2020).
For the period under review, continuing operations reported a 37 percent increase in revenue to R8,2 billion (H1 2019: R6 billion), a 95 percent increase in operating profit to R1,9 billion (H1 2019: R973 million), and a 127 percent increase in earnings before interest, taxes, depreciation, and amortisation to R2,5 billion (H1 2019: R1,1 billion).
In a joint statement, Tongaat Hulett’s chairperson, Louis von Zeuner, and CEO, Gavin Hudson, said it was fortunate that the majority of the company’s businesses were classified as essential services during Covid-19-related lockdowns in the countries in which it operates.
“Crucially, the restructuring and reinvigoration of our group over the past two years has permitted us to thrive in this challenging environment, supported by a leaner, fit-for-purpose platform from which to weather the storm. To date, the focus on improving our cash generation and reducing debt has resulted in a considerable reduction in debt levels. Several key asset disposals have successfully been concluded during the period,” they said.
During H1 2020, Tongaat Hulett’s sugar operations in South Africa, Mozambique, Zimbabwe, Botswana, Namibia, and Swaziland collectively generated R2,13 billion operating profit (H1 2019: R855 million). — Farmers Weekly.