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ILV
ILV
ILV - Illovo Sugar Limited - Interim report for the six months ended 30
September 2010
ILLOVO SUGAR LIMITED
(Incorporated in the Republic of South Africa)
Company registration number 1906/000622/06
Share Code: ILV
ISIN: ZAE000083846
("Illovo" or "the Company")
INTERIM REPORT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2010
Highlights
- Earnings impacted by strong rand and severe drought in South Africa
- Cash generation remains strong
- Zambia expansion settled down well and Swaziland expansion on track
- Registration of furfural as an agricultural chemical in USA - opens major
new market
Quote
Graham Clark, Managing Director, commented:
"Our results this season have been severely impacted by the strong rand in
respect of export earnings and conversion of foreign profits. In addition, the
very severe drought in KwaZulu-Natal in South Africa and unseasonal rainfall
elsewhere has hit our production. Notwithstanding these external factors on our
business, we anticipate overall production for the year to be similar to that of
last year, largely due to the successful expansion in Zambia. We continue to
invest for the future and are making good progress with our expansion and co-
generation project in Swaziland."
Enquiries:
Illovo Sugar 031 508 4300
Graham Clark, Managing Director
Karin Zarnack, Financial Director
Chris FitzGerald, Public Affairs Manager
College Hill 011 447 3030
Nicholas Williams 083 607 0761
Basis of preparation
This report incorporates financial statements which reflect both actual results
based on accounting policies and methods of computation which are based on
International Financial Reporting Standards ("IFRS") and those determined on a
sugar season basis which, in the directors` opinion, provide a better basis for
evaluating the financial performance of the company.
The sugar industry is a seasonal agriculturally based business and the payment
processes are such that cash flows throughout the season, which runs from 1
April to 31 March, are derived from the expected tonnages and prices that will
be achieved for the season as a whole. The effect of this is that product sales
tonnages and prices received, and raw material prices paid are provisional in
nature until the conclusion of the season. For this reason the directors
consider that profit figures based on actual cash flows may not represent the
best basis for evaluating the performance and the results for the period. In
respect of the sugar season basis results, operational profits for cane growing
and sugar production comprise the company`s view of the position at 30 September
2010 as it relates to the season as a whole. All other results are based on
actual performance. The amounts disclosed in respect of cane growing and sugar
production operations are based on a profit forecast for the year ending 31
March 2011 which has been examined by our auditors, Deloitte & Touche. Their
unmodified accountants` report is available for inspection at the company`s
registered office.
The unaudited actual results for the six months ended 30 September 2010 have
been prepared using accounting policies and methods of computation that comply
with IFRS and are prepared in accordance with IAS34 (Interim financial
reporting). The accounting policies adopted are consistent with those of the
previous financial period.
Review
Actual results for the six months ended 30 September 2010, compared to the
corresponding period last year, have been negatively impacted by the strength of
the South African rand which has depressed export earnings and adversely
affected the conversion of foreign subsidiaries` profits. Actual operating
profit for the period reduced by 17% and headline earnings were 14% lower.
On a sugar season basis, group operating profit for the six months ended 30
September 2010 declined to R522.9 million from R775.7 million last year. This
reduction of 33% reflects the ongoing strength of the rand and anticipated
continuing weakness of the US dollar. Production in the same period, on a
seasonal basis has also been negatively affected and was reduced by drought in
South Africa and unseasonal rainfall elsewhere.
Net financing costs of R35.5 million were lower than in the previous year.
Interest paid was R141.9 million lower, reflecting improved group gearing
subsequent to the rights issue concluded in September 2009. Foreign exchange
gains of R143.0 million included in net financing costs last year were not
repeated in the six months to 30 September 2010. Headline earnings of R258.6
million are 33% lower.
The contributions to operating profit were sugar production 71%, cane growing
22% and downstream 7%. By country, contributions were Malawi 47%, Zambia 28%,
Tanzania 12%, South Africa 7%, Swaziland 4% and Mozambique 2%.
The season to date has been negatively affected by variable weather conditions
as well as the adverse impact of a weak US dollar and strong local currencies.
In South Africa, the effect of drought conditions in KwaZulu-Natal has been most
severe. The lack of rainfall during the critical growing period for the cane
crop drastically reduced cane yields and cane availability resulting in the
early closure of the Umzimkulu and Eston factories. Sugar production from
Illovo`s South African operations is expected to be approximately 90 000 tons,
nearly 15% below the previous season. In Malawi, Mozambique and Swaziland late
and unseasonal rains early in the season disrupted operations and reduced cane
quality in those countries. In Zambia and Tanzania, however, normal climatic
conditions have been experienced and the season has progressed favourably to-
date.
In general, the group`s sugar factories have operated satisfactorily, with the
Zambian factory, which has settled down well following the recent major
expansion, now regularly exceeding design capacity with crush volumes exceeding
100 000 tons of cane per week. Sugar recoveries have been reasonable across the
group.
In Swaziland, the expansion programme at Ubombo is well-advanced and the
upgraded factory facilities will be commissioned in time for the start of the
next season. Cane development utilising water from the now complete Lubovane
Dam is progressing satisfactorily. The co-generation facilities, designed to
utilise a mixture of bagasse (cane fibre) and biomass (leaves and trash), will
commence generating electricity following start up of the expanded factory.
From 2011, the Ubombo operation will be self-sufficient in electricity and will
be a significant supplier of power to the national grid. This "renewable energy"
should also attract carbon trading opportunities for the group.
Downstream production of furfural and derivatives in South Africa has been
affected by lower cane availability this year and, although the plant has
operated efficiently, production will be lower. Both alcohol plants in South
Africa have operated well with available molasses sufficient for their needs. A
major milestone in the further commercialisation of furfural for use as a
nematicide, an agricultural chemical, was reached in July 2010 following the
registration for its use on golf courses and turf farms in the United States by
the Environmental Protection Agency. This approval opens a new market for high
margin sales, and registration for use of the product on food crops is now being
sought. Market conditions for furfural and alcohol are generally buoyant, and
although prices have firmed, export earnings have been depressed by the strength
of the rand in the first half of the year.
Domestic market sugar sales continue to be strong and good growth in volumes has
been experienced in Malawi, Mozambique, Tanzania and Zambia. Marginal growth
has occurred in South Africa and Swaziland.
Export volumes have increased following the expansion in Zambia and the group
supplied increased tonnages of bulk raw sugar for refining in Europe via long
term contracts secured with key European processors. The weakness of the Euro
in the first half of the year, together with European sugar price realisations
being lower than anticipated, resulted in earnings from sales into the EU market
being below expectations. The resurgence in the world sugar price has
positively influenced regional markets in Central Africa and prices have become
attractive for exports into this region from Malawi, Swaziland and Zambia. An
ongoing shortage of sugar in Zimbabwe has also seen an increase in sales to that
market. Exports to the world sugar market only take place from South Africa and
the strengthening world sugar price has enabled improved prices to be realised.
However, lower sugar production has meant that the South African industry has
been unable to take full advantage of this opportunity and world market exports
are unlikely to exceed 355 000 tons for the year (2009/10: 742 281 tons),
currently priced at US18.33 cents/lb, compared to US16.53 cents/lb achieved last
year.
The group`s greenfield project in Mali continues to progress positively and
securing final approval of project finance is now the last remaining hurdle
required to be cleared before construction work is able to commence. Extended
due diligence and negotiation of financing terms have been completed and
approval by the African Development Bank, the project debt coordinator, is
expected before the end of the 2010 calendar year. Thereafter, financial
completion is expected by mid-2011, following which agricultural activity will
commence. Factory construction will thereafter start at the end of 2012 and will
take 24 months to complete.
During the year, the group increased its shareholding in Maragra Acucar SA, its
operating subsidiary in Mozambique, to 90% following the purchase of shares from
the minority shareholder.
Capital reduction distribution out of share premium in lieu of dividend
Notice is hereby given that, in terms of an ordinary resolution passed by the
members of the company at the annual general meeting held on 21 July 2010, an
interim capital reduction distribution out of share premium of 22.0 cents per
share has been declared, in lieu of a dividend, on the ordinary shares of the
company in respect of the six months ended 30 September 2010.
In accordance with the settlement procedures of Strate, the company has
determined the following salient dates for the payment of the capital
distribution:
Last day to trade cum the
capital distribution Friday, 31 December 2010
Shares commence trading ex
the capital distribution Monday, 3 January 2011
Record date Friday, 7 January 2011
Payment of interim capital
Distribution Monday, 10 January 2011
Share certificates may not be dematerialised / rematerialised between Monday,
3 January 2011 and Friday, 7 January 2011, both days inclusive.
A more detailed announcement relating to the capital reduction will be issued
concurrently herewith.
Prospects
Sugar production for the full year will be negatively impacted by the severe
drop in output from South Africa due to the drought, whilst production in
Swaziland will be below that of last season as a result of adverse weather
conditions. This will be offset by a significant increase in Zambia and a
marginal improvement in Tanzania. Overall, group sugar production for the year
is expected to be similar to that of last year. The continued strength of the
rand and weakness of the US dollar will have a negative impact on export
earnings as well as on the conversion of foreign subsidiary profits.
As a result of the drought in the group`s cane supply areas in South Africa, and
even with good summer rainfall, cane production on the south coast of KwaZulu-
Natal is forecast to be lower next year compared to the current year. It has
therefore been decided not to operate the Umzimkulu factory in 2011/12 and to
divert cane supplies to other group factories in order for them to run nearer to
capacity and to maximise downstream production of furfural.
Trading Statement
Trading conditions have deteriorated across the group as a consequence of the
serious drought in KwaZulu-Natal in South Africa, together with further
weakening of the US dollar and the strengthening of the rand. In addition, the
weaker Euro in the first half of the year impacted negatively on downstream
revenue and sugar export earnings from sales to the European Union.
Accordingly, earnings and headline earnings will be lower than achieved in the
previous financial year. Further to the guidance given on 21 July 2010,
earnings per share and headline earnings per share, which are also affected by
the full year dilution impact of the rights issue completed in September 2009,
are currently expected to be between 30% and 40%, and 35% and 45% lower
respectively than achieved in the financial year ended 31 March 2010.
On behalf of the Board
R A Williams G J Clark Mount Edgecombe
Chairman Managing Director 17 November 2010
Directors:
R A Williams (Chairman)*, D G MacLeod (Deputy Chairman)*,
G J Clark (Managing Director) (Australian), M I Carr#*,
M J Hankinson*, D Konar*, P A Lister#*, P M Madi*,
C W N Molope*, A R Mpungwe (Tanzanian)*, T S Munday*,
R N Pike#*, L W Riddle, B M Stuart, K Zarnack
# British * Non-executive
Registered office:
Illovo Sugar Park,
1 Montgomery Drive, Mount Edgecombe,
KwaZulu-Natal, South Africa
Postal address:
P O Box 194, Durban, 4000
Telephone: +27 31 508 4300
Telefax: +27 31 508 4535
Website: www.illovosugar.com
Transfer Secretaries:
Link Market Services South Africa (Proprietary) Limited
11 Diagonal Street, Johannesburg, 2001,
P O Box 4844, Johannesburg, 2000
Auditors:
Deloitte & Touche
Sponsor:
J.P. Morgan Equities Limited
ABRIDGED GROUP INCOME STATEMENT
Actual Sugar season Actual
basis
Unaudited Unaudited Audited
Six months ended Six months ended Year
ended
30 September 30 September 31 March
2010 2009 2010 2009 Change 2010
Notes Rm Rm Rm Rm % Rm
Revenue 3 968.5 4 247.6 4 257.3 4 345.3 (2) 8 467.9
Operating 1 025.8 1 236.9 522.9 775.7 (33) 1 498.6
profit
Dividend income - 1.4 - 1.4 3.9
Net financing 1 ( 35.5) ( 39.7) ( 35.5) ( 39.7) (
costs 139.0)
Profit before 990.3 1 198.6 487.4 737.4 1 363.5
non-trading
items
Share of loss ( 2.2) - ( 2.2) - ( 8.4)
from associates
Material items 2 19.8 ( 27.9) 19.8 ( 27.9) ( 52.4)
Profit before 1 007.9 1 170.7 505.0 709.5 1 302.7
taxation
Taxation ( 282.0) ( ( ( (
327.6) 149.1) 216.8) 411.5)
Profit for the 725.9 843.1 355.9 492.7 891.2
period
Attributable
to:
Shareholders of 594.0 647.0 278.4 363.1 (23) 662.0
Illovo Sugar
Limited
Non-controlling 131.9 196.1 77.5 129.6 229.2
interest
725.9 843.1 355.9 492.7 891.2
Determination
of headline
earnings:
Profit 594.0 647.0 278.4 363.1 (23) 662.0
attributable to
shareholders
Adjusted for :
- (Profit)/loss 2 (19.8) 28.9 (19.8) 28.9 37.3
on disposal of
business
- Impairment of
investment in
agricultural
joint 2 - - - - 15.0
venture
- (Profit)/loss 2 - (1.0) - (1.0) 0.1
on disposal of
property
- Loss/(profit)
on disposal of
plant and
equipment - 0.3 - 0.3 (2.9)
Total tax - (7.1) - (7.1) (10.0)
effect of
adjustments
Total non-
controlling
interest effect
of adjustments - - - - 1.0
Headline 574.2 668.1 258.6 384.2 (33) 702.5
earnings
Number of 459.4 460.0 459.4 460.0 460.2
shares in issue
(millions)
Weighted average
number of shares on
which
headline earnings per 460.0 360.8 460.0 360.8 410.3
share are based
(millions)
Headline 124.8 185.2 56.2 106.5 (47) 171.2
earnings per
share (cents)
Diluted headline 124.6 184.5 56.2 106.2 170.7
earnings per share
(cents)
Basic earnings 129.1 179.3 60.5 100.6 161.4
per share
(cents)
Diluted basic 128.9 178.7 60.5 100.4 160.9
earnings per
share (cents)
Distribution 3 22.0 32.0 22.0 32.0 (31) 86.0
per share
(cents)
ABRIDGED GROUP STATEMENT OF FINANCIAL POSITION
Actual Sugar season Actual
basis
Unaudited Unaudited Audited
30 September 30 September 31 March
2010 2009 2010 2009 2010
Rm Rm Rm Rm Rm
ASSETS
Non-current 5 676.7 5 467.3 5 676.7 5 467.3 5 722.8
assets
Property, plant 4 246.7 3 948.9 4 246.7 3 948.9 4 262.7
and equipment
Cane roots 1 080.3 1 133.3 1 080.3 1 133.3 1 100.2
Intangible 174.4 205.9 174.4 205.9 179.1
assets
Investments 175.3 179.2 175.3 179.2 180.8
Current assets 5 002.5 5 797.7 5 002.5 5 797.7 3 925.1
Inventories 2 506.5 2 241.8 2 506.5 2 241.8 679.1
Growing cane 1 032.8 1 181.7 1 032.8 1 181.7 1 260.7
Trade and other 902.4 1 259.9 902.4 1 259.9 639.0
receivables
Financial 3.0 11.6 3.0 11.6 0.9
instruments
Cash and cash 557.8 1 102.7 557.8 1 102.7 1 345.4
equivalents
Total assets 10 679.2 11 265.0 10 679.2 11 265.0 9 647.9
EQUITY AND
LIABILITIES
Total equity 6 343.6 6 721.6 5 973.6 6 371.2 6 314.7
Equity holders` 5 493.4 5 827.4 5 177.8 5 543.5 5 502.6
interest
Non-controlling 850.2 894.2 795.8 827.7 812.1
interest
Non-current 2 071.0 2 266.0 2 071.0 2 266.0 1 818.0
liabilities
Deferred 596.0 644.7 596.0 644.7 685.8
taxation
Borrowings 1 475.0 1 621.3 1 475.0 1 621.3 1 132.2
Current 2 264.6 2 277.4 2 634.6 2 627.8 1 515.2
liabilities
Trade and other 2 246.9 2 222.6 2 616.9 2 573.0 1 513.4
payables
Financial 17.7 54.8 17.7 54.8 1.8
instruments
Total equity and 10 679.2 11 265.0 10 679.2 11 265.0 9 647.9
liabilities
OTHER SALIENT
FEATURES
Note
Operating margin 25.8 29.1 12.3 17.9 17.7
(%)
Interest cover 28.9 31.2 14.7 19.5 10.8
(times)
Effective tax 28.5 27.3 30.6 29.4 30.2
rate (%)
Net debt : 4 14.5 7.7 15.4 8.1 ( 3.4)
equity ratio
Net asset value per 1 380.8 1 461.2 1 300.2 1 385.0 1 372.3
share (cents)
Depreciation 188.6 167.9 188.6 167.9 250.4
Capital 483.1 829.2 483.1 829.2 1 328.6
expenditure
- expansion 373.4 403.2 373.4 403.2 845.6
capital
- replacement 107.9 134.7 107.9 134.7 181.1
capital
481.3 537.9 481.3 537.9 1 026.7
- acquisition of - 251.7 - 251.7 249.9
business
- expansion of - 34.2 - 34.2 40.9
area under cane
- product 1.8 5.4 1.8 5.4 11.1
registration
costs
Capital 3 639.1 3 599.6 3 639.1 3 599.6 3 414.5
commitments
- contracted 559.1 173.4 559.1 173.4 640.5
- approved but 3 080.0 3 426.2 3 080.0 3 426.2 2 774.0
not contracted
Lease 248.8 139.7 248.8 139.7 241.2
commitments
- land and 169.6 67.4 169.6 67.4 151.1
buildings
- other 79.2 72.3 79.2 72.3 90.1
Contingent 49.2 3.1 49.2 3.1 48.7
liabilities
ABRIDGED GROUP STATEMENT OF CASH FLOWS
Actual Sugar season Actual
basis
Unaudited Unaudited Audited
Six months ended Six months ended Year
ended
30 September 30 September 31
March
2010 2009 2010 2009 2010
Rm Rm Rm Rm Rm
Cash flows from
operating and
investing activities
Cash operating profit 1 326.7 1 323.5 823.8 862.3 1 443.1
Working capital (1 (1 649.8) (1 079.9) (1 188.6) ( 183.2)
requirements 582.8)
Cash (utilised (256.1) (326.3) (256.1) (326.3) 1 259.9
by)/generated from
operations
Replacement capital (107.9) (134.7) (107.9) (134.7) ( 181.1)
expenditure
Financing costs, (507.9) (534.0) (507.9) (534.0) ( 929.5)
taxation and
distributions
Net investment in (375.2) (442.8) (375.2) (442.8) ( 897.6)
future operations
Research expenditure (10.3) (10.5) (10.3) (10.5) ( 23.2)
Acquisition of - (251.7) - (251.7) ( 249.9)
business
Other movements 35.0 78.5 35.0 78.5 36.1
Net cash outflows (1 (1 621.5) (1 222.4) (1 621.5) ( 985.3)
before financing 222.4)
activities
Proceeds from rights - 2 959.8 - 2 959.8 2 950.5
issue, net of
associated costs
Borrowings 481.1 (1 030.3) 481.1 (1 030.3) (1 426.6)
raised/(repaid)
Other financing ( (
activities 29.0) 263.0 29.0) 263.0 262.0
Net ( (
(decrease)/increase 770.3) 571.0 770.3) 571.0 800.6
in cash and cash
equivalents
STATEMENT OF OTHER
COMPREHENSIVE INCOME
Profit for the period 725.9 843.1 355.9 492.7 891.2
Other comprehensive
income
Foreign currency (168.6) (501.9) (168.6) (501.9) (748.4)
translation
differences
Adjustments in (13.1) (18.1) (13.1) (18.1) (17.2)
respect of cash flow
hedges
Actuarial losses on - - - - (2.7)
post-retirement
obligations
Hedge of net (37.7) 2.8 (37.7) 2.8 -
investment in foreign
subsidiary
Total comprehensive 506.5 325.9 136.5 (24.5) 122.9
income/(loss) for the
period
Attributable to:
Shareholders of 356.9 188.6 41.3 (95.3) 24.6
Illovo Sugar Limited
Non-controlling 149.6 137.3 95.2 70.8 98.3
interest
506.5 325.9 136.5 (24.5) 122.9
ABRIDGED STATEMENT OF CHANGES IN EQUITY
Actual Sugar season Actual
basis
Unaudited Unaudited Audited
Six months ended Six months ended Year
ended
30 September 30 September 31 March
2010 2009 2010 2009 2010
Rm Rm Rm Rm Rm
Share capital and
share premium
Balance at beginning 3 075.7 367.5 3 075.7 367.5 367.5
of the period
Issue of new shares 1.4 2 959.8 1.4 2 959.8 2 956.7
Net cost of share buy-( 30.4) - ( 30.4) - -
back
Transfer to ( - ( - ( 248.5)
distribution reserve 101.2) 101.2)
Balance at end of the 2 945.5 3 327.3 2 945.5 3 327.3 3 075.7
period
Share-based payments
reserve
Balance at beginning 13.1 13.1 13.1 13.1 13.1
of the period
Share-based payment - - - - -
expense
Balance at end of the 13.1 13.1 13.1 13.1 13.1
period
Non-distributable
reserves
Balance at beginning 224.7 396.5 224.7 396.5 396.5
of the period
Realised loss on - - - - ( 0.1)
disposal of property
Transfer of debit 187.1 - 187.1 - 341.8
foreign currency
translation reserve
Transactions with non-( 88.5) 131.2 ( 88.5) 131.2 121.2
controlling
shareholders
Total comprehensive
income:
- Foreign currency ( (443.1) ( ( (618.1)
translation 187.1) 187.1) 443.1)
- Cash flow hedges ( 12.3) (18.1) ( 12.3) ( 18.1) (16.6)
- Hedge of net ( 37.7) 2.8 ( 37.7) 2.8 -
investment in foreign
subsidiary
Balance at end of the 86.2 69.3 86.2 69.3 224.7
period
Retained surplus
Balance at beginning 1 940.6 1 770.4 1 940.6 1 770.4 1 770.4
of the period
Realised loss on - - - - 0.1
disposal of property
Transfer of debit ( - ( - ( 341.8)
foreign currency 187.1) 187.1)
translation reserve
Transfer to - (146.9) - (146.9) (147.4)
distribution reserve
Total comprehensive
income:
- Profit for the 594.0 647.0 278.4 363.1 662.0
period
- Actuarial loss on - - - - (2.7)
post-retirement
obligations
Balance at end of the 2 347.5 2 270.5 2 031.9 1 986.6 1 940.6
period
Distribution reserve
Balance at beginning 248.5 226.3 248.5 226.3 226.3
of the period
Transfer from share 101.2 - 101.2 - 248.5
premium
Transfer from - 146.9 - 146.9 147.4
retained surplus
Distributions paid ( (226.0) ( (226.0) (373.7)
248.6) 248.6)
Balance at end of the 101.1 147.2 101.1 147.2 248.5
period
Equity holders` 5 493.4 5 827.4 5 177.8 5 543.5 5 502.6
interest
Non-controlling
interest
Balance at beginning 812.1 671.2 812.1 671.2 671.2
of the period
Distributions paid ( (82.9) ( (82.9) (116.5)
103.9) 103.9)
Acquisition of - 36.7 - 36.7 41.9
business
Change in ( 7.6) 131.9 ( 7.6) 131.9 117.2
shareholding
Total comprehensive
income:
- Foreign currency 18.5 (58.8) 18.5 (58.8) (130.3)
translation
- Cash flow hedges ( 0.8) - ( 0.8) - (0.6)
- Profit for the 131.9 196.1 77.5 129.6 229.2
period
Balance at end of the 850.2 894.2 795.8 827.7 812.1
period
Total equity 6 343.6 6 721.6 5 973.6 6 371.2 6 314.7
SEGMENTAL ANALYSIS
Actual Sugar season basis Actual
Unaudited Unaudited Audited
Six months ended Six months ended Year ended
30 September 30 September 31 March
2010 2009 2010 2009 2010
Rm Rm Rm % Rm % Rm
BUSINESS SEGMENTS
Revenue
Sugar 2 266.8 2 520.8 2 948.4 69 3 014.6 70 5 893.5
production
Cane 1 337.5 1 387.4 946.1 22 1 013.1 23 1 910.8
growing
Downstream 364.2 339.4 362.8 9 317.6 7 663.6
3 968.5 4 247.6 4 257.3 4 345.3 8 467.9
Operating profit
Sugar 638.2 623.1 371.8 71 471.8 61 890.3
production
Cane 321.3 528.4 116.9 22 257.9 33 505.2
growing
Downstream 66.3 85.4 34.2 7 46.0 6 103.1
1 025.8 1 236.9 522.9 775.7 1 498.6
Total
assets
Sugar 6 334.7 5 952.6 6 334.7 63 5 952.6 59 4 037.9
production
Cane 3 371.4 3 788.9 3 371.4 33 3 788.9 37 3 949.9
growing
Downstream 412.3 409.2 412.3 4 409.2 4 313.8
10 10 10 118.4 10 150.7 8 301.6
118.4 150.7
Note: Total assets excludes cash and cash equivalents and financial instruments
GEOGRAPHICAL
SEGMENTS
Revenue
Malawi 809.3 840.4 788.7 19 897.8 21 1 711.3
Zambia 859.2 806.0 998.2 23 874.1 20 1 468.1
Tanzania 249.8 357.6 314.5 7 319.7 7 682.1
South 1 336.2 1 395.3 1 644.1 39 1 680.9 39 3 447.0
Africa
Swaziland 519.5 541.8 356.9 8 395.0 9 799.5
Mozambique 194.5 306.5 154.9 4 177.8 4 359.9
3 968.5 4 247.6 4 257.3 4 345.3 8 467.9
Operating
profit
Malawi 381.2 479.5 245.6 47 323.4 42 637.5
Zambia 235.3 215.7 147.0 28 199.8 26 264.3
Tanzania 57.6 81.4 63.7 12 61.8 8 166.8
South 233.0 222.4 38.3 7 108.1 14 255.3
Africa
Swaziland 99.3 118.3 20.0 4 56.3 7 119.7
Mozambique 19.4 119.6 8.3 2 26.3 3 55.0
1 025.8 1 236.9 522.9 775.7 1 498.6
NOTES TO THE FINANCIAL STATEMENTS
Unaudited Audited
Six months ended Year
ended
30 September 31
March
2010 2009 2010
Rm Rm Rm
1. Net financing costs
Interest paid ( 79.0) ( 220.9) (
307.6)
Less: capitalised 8.4 8.1 14.2
( 70.6) ( 212.8) (
293.4)
Interest received 35.2 30.1 30.5
Foreign exchange ( 0.1) 143.0 123.9
(losses)/gains
( 35.5) ( 39.7) (
139.0)
2. Material items
Profit/(loss) on 19.8 ( 28.9) ( 37.3)
disposal of business
Impairment of investment - - ( 15.0)
in agricultural joint
venture
Profit/(loss) on - 1.0 ( 0.1)
disposal of property
Material profit/(loss) 19.8 ( 27.9) ( 52.4)
before taxation
Taxation - 7.1 10.2
Material profit/(loss)
attributable to
shareholders
of Illovo Sugar Limited 19.8 ( 20.8) ( 42.2)
3. Distribution per share
The distribution per share of 22.0 cents represents an
interim capital distribution declared out of share
premium (2009: interim dividend of 32.0 cents).
4. Net debt : equity ratio
The net debt : equity ratio is calculated as interest-
bearing liabilities, net of cash and cash equivalents,
divided
by total equity. A negative net debt : equity ratio
indicates that the group is in a net cash position.
Date: 18/11/2010 07:05:02 Produced by the JSE SENS Department.
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