ILV
ILV
Illovo Sugar Limited - Trading statement
ILLOVO SUGAR LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1906/000622/06)
Share Code: ILV
ISIN: ZAE000083846
("Illovo" or "the company")
Trading statement
This statement is issued in compliance with the Listings Requirements
(Section 3.4(b)) of the JSE Limited.
In terms of established practice, Illovo issues financial statements for
the first six months of its financial year which reflect both actual
results based on International Financial Reporting Standards and, because
the sugar industry is a seasonal agriculturally based business, results
which are determined on a sugar season basis. It is the directors" opinion
that the results determined on a sugar season basis provide a better basis
for evaluating the financial performance of the company.
Illovo"s results are considerably impacted by the level of the rand
compared to other currencies, particularly the US dollar, and by the world
price of sugar.
Earnings are being positively impacted by rand realisations, the
improvement in the world sugar price since last year, improved domestic
sales and prices, and operating cost reductions, offset by decreases in the
production estimates in South Africa and Tanzania. Consequently,
shareholders are advised that it is anticipated that both actual and sugar
season basis headline earnings per share ("heps") and earnings per share
("eps") for the six months ending 30 September 2006 will be between 65% and
85% higher than the equivalent results in the corresponding period last
year.
For the full year to 31 March 2007, however, after taking account of the
strong performance in the second half of the previous financial year, it is
anticipated that heps and eps will be between 30% and 50% higher than in
the previous financial year. This assumes that the value of the rand and
the world sugar price continue at around their present levels. (It should
be noted that for the full year, there is no difference between actual
results and those determined on a sugar season basis.)
The forecast financial information on which this trading statement is based
has not been reviewed or reported upon by the company"s auditors.
Mount Edgecombe
13 September 2006
Sponsor: J.P.Morgan Equities Limited
Date: 14/09/2006 08:36:06 AM Produced by the JSE SENS Department
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