South Africa’s Tongaat Hulett Ltd said on Monday its full-year profit fell 18 percent, in line with its estimate, on weak sugar prices and low production as a result of severe drought.
The sugar producer said headline earnings per share – which strips off certain one-off items – was 678 cents compared with 826 cents in the previous year.
Southern Africa, where Tongaat has its mills, is going through a severe drought, last seen decades ago, and this has cut production of most crops ranging from maize to sugar.
“The results were attained with record performances from the starch operation, and the land conversion and development activities being negated by the impact of the substantial reduction in Tongaat Hulett’s sugar production as a result of poor growing conditions”, the company said in a statement.
Tongaat declared a final dividend of 60 cents, bringing the annual dividend down 39.5 percent to 230 cents from 380 cents.