Tongaat delivers double-digit earnings growth for FY17

29th May 2017 By: Natasha Odendaal - Creamer Media Senior Deputy Editor

JSE-listed Tongaat Hulett on Monday reported double-digit earnings growth for the year ended March 31.

The group achieved a 44.6% hike in headline earnings, from R679-million in 2016, to R982-million in the 12 months under review.

Operating profit for the year reached R2.3-billion, a 39.8% year-on-year increase, reflecting an improvement in sugar revenue and operating profit under difficult conditions.

Tongaat also increased its revenue for the 2017 financial year by 7.4% to R17.9-billion.

Operating cash flow after working capital surged 70.5% to R3.1-billion.

Tongaat Hulett’s net debt as at March 31 was R4.78-billion, marginally down on the R5.10-billion a year ago.

While the company said its profit for the 2017/18 year would continue to be influenced by a number of substantial and varying dynamics, both positive and negative, overall, there was a positive outlook for the full year with earnings growth expected to continue and cash flow momentum expected to be maintained.

Tongaat declared a dividend of 300c a share for the 2017 financial year, a 30.4% increase on the 230c declared in 2016.