S.Africa’s Tongaat posts loss as pandemic hampers asset gross sales

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S.Africa’s Tongaat posts loss as pandemic hampers asset gross sales


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JOHANNESBURG, July 13 (Reuters)South African sugar producer Tongaat Hulett TONJ.J on Tuesday posted an annual loss, hit by hyperinflation in Zimbabwe and a slowdown in land gross sales, which it has used to scale back debt, because of the COVID-19 pandemic.

Tongaat, which has launched into a method of promoting property and chopping prices to spice up money movement amid excessive debt ranges, reported a headline loss per share for the 12 months ended March 31 of 631 cents in contrast with a revenue of 90 cents a 12 months earlier.

Income from persevering with operations fell 3% to 14.918 billion rand ($1.04 billion) from 15.382 billion.

The agriculture and agri-processing firm mentioned it continued to be negatively impacted by hyperinflation in Zimbabwe, with a web financial lack of 626 million rand through the monetary 12 months.

It added that it was additional hindered by delays and cancellations in land gross sales as a result of COVID-19.

“Though tangible progress has been made, we proceed repairing and rebuilding what was a fragile organisation, with remnants of considerable debt, constrained money flows, and a legacy of poor operational and cultural practises which has been difficult to navigate,” mentioned Tongaat Hulett CEO Gavin Hudson.

Tongaat mentioned it recorded a refinery lack of round 27,000 tonnes of sugar at its South African operations after a ramp up in output as a result of larger demand led to larger manufacturing prices and course of inefficiencies.

Asset disposals for the 12 months amounted to six.566 billion rand, it mentioned, including it had decreased web debt by 42% to six.570 billion rand.

($1 = 14.4008 rand)

(Reporting by Tanisha Heiberg, enhancing by Louise Heavens, Kirsten Donovan)

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