Zambia Sugar Plc (LUSE: ZSUG) reported a 14% year-on-year increase in net profit to K146 million in financial year (FY) 2014. Earnings per Share (EPS) came in at K0.45 (K0.39 in 2013):
The year-on-year increase in net profits was primarily driven by a reduction in the effective income tax rate from 22% to 12%. Operating income was up 9% year-on-year to K330 million in FY 2014. Net finance costs increased by 18% to K164 million as a result of a rise in prevailing interest rates in the economy.
Zambia Sugar experienced revenue growth of 7% year-on-year to K1.9 billion in FY 2014:
Growth in the revenue was driven by a 60% rise in regional exports, record domestic sales (up 6%) and favorable exchange rate movements. This served to counter a 30% decrease in sales to the European Union (EU) market as well as the effects of surplus sugar stocks on the global market. The company achieved record sugar production of 424,000 MT, up 5% from the previous year.
Zambia Sugar’s stock price closed the year at K6.6, up 0.2% in 2014.
The total dividend paid in FY 2014 will be K0.23 per share (K0.20 in 2013), comprising of 2 interim dividends and a final dividend.
In their outlook for 2015, the company said:
Sugar production in the 2015/16 season is estimated to be marginally less than the past season due to dry conditions experienced in November and December 2014, power interruptions, the outbreak of yellow sugar cane aphids and unseasonal rains during April 2015. The company continues to implement strategies to mitigate these challenges.
Trying to decipher this puzzle that is Zambia by using a variety of publicly available data (structured and unstructured) in conjunction with my own skill/experience. * * *