JSE-listed Tongaat Hulett expects to report a headline loss for the six months ended September 30, 2019, of between R300-million and R322-million, which is an improvement on the headline loss of R354-million recorded in the six months ended September 30, 2018.

That translates to a headline loss a share of between 222c and 238c, compared with a headline loss a share of 322c for the prior comparable period.

In a trading update published on Wednesday, the company said its headline loss a share was impacted on by the unwinding of its 2007 broad-based black economic empowerment equity transaction, as well as the applied financial reporting standards in Zimbabwe’s hyperinflationary environment.

Meanwhile, it also reported that its Mozambican operations had experienced a notable turnaround in the six months under review, benefiting from higher local sales on the back of beneficial pricing and promotions, as well as from successful cost containment measures.

This, together with the positive impact of the Xinavane refinery coming on stream in the reporting period, returned the operations to profitability after a loss in the comparable period.

Tongaat’s sugar production in South Africa had improved by 10% in the six months under review, compared with the prior comparable period. However, lower local sales volumes and a change in the sales mix towards lower-margin exports had increased the operations’ operating loss for the reporting period. 

The company had also earned higher profits from land conversion and development, mainly owing to the re-recognition of historical property deals.

The deals that were recognised in the six months under review represented the equivalent of 141 000 m² of new building floor space, compared with 17 000 m² in the prior corresponding period. 

The company’s interim results will be released on January 31.

The company has also approached the JSE to lift the suspension of its shares and says this may occur in the first week of February.