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Thursday, March 28, 2024
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Hippo Valley Revenue Tumbles

Sugar producers, Hippo Valley Estates Limited revenue for the half year ended 31 March 2018 tumbled eight percent down to $137,0 million compared to $148,5 million recorded during the same period last year mainly due to a 14% decrease in sugar production.

According to the group financial results, operating profit increased to 27% due to improved margins on the back of the favorable sales.

“Operating profit increased to $17,0 million (2017: $13,4 million), a 27% increase due to improved margins on the back of the favorable sales mix, combined with a positive swing in standing cane valuation arising from an improvement in the cane age and expected yield of the sugar cane crop to be harvested in the 2018/19 year,” reads the report.

Hippo Valley further reported that operating cash flow (after working capital movements) also decreased in line with the reduction in revenue.

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“Operating cash flow (after working capital movements) was $32,3 million (2017: $37,9 million), a decrease of $5,6 million in line with the reduction in revenue.

“Cash generated from operations amounted to $23,5 million (2017: $38,0 million), while working capital increased by $12,9 million compared to a $3,1 million decrease in the prior year. Overall, after taking into account capital expenditure and root replanting costs totaling $22,6 million.

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“The Company’s net debt at 31 March 2018 amounted to $3,1 million which was a 61% improvement on the prior year level of $7,9 million. A total of $3,0 million (2017: $4,4 million) was incurred in finance costs commensurate with the level of borrowings, all of which were unsecured, at an average interest rate of 7,97% (2017: 7,57%).

“An attributable profit of 5,72 US cents per share was achieved for the year compared to 3,98 US cents per share realised in the prior year,” read the report.

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