Illovo Malawi plc has reported a jump in profit to K8.1 billion in the six months ended February 28 2019 from K7 billion despite a drop in revenue. The profit jump is higher than the K6.9 billion profit the company made during the same period last year, representing a 15.7% increase.

Figures from an extract from its unaudited financial statement for the six months (ended February 28 2019) that the company achieved a 14% increase in cane harvested and crushed during the period under review.

As an outlook for the future, Illovo Malawi says it would focus on the Nchalo agricultural and factory recovery and use of efficient irrigation systems and factory energy efficient improvements together with a focus on plant performance. However, the company also noted some setbacks, as the statement reads “Challenging market conditions continued to be experienced in the commercial sphere with illegal sugar imports continuing in the domestic market which consequently had a negative impact on domestic sales and the group’s cash flows.”

A for dividends, Illovo Sugar has said it would not pay any interim dividends to its shareholders due to capital expenditure requirements and after taking into account the overall business cash generation and resultant cash flow constraints.