Zambia Sugar Half Year Profit Soar

NAKAMBALA, 1

st June, 2021: Zambia Sugar Plc recorded an impressive half year financial
performance for the year 2021 with operating profit rising to K768 million compared to K235 million in
the corresponding prior year.
Addressing Analysts, shareholders and journalists at Radisson Blu Hotel, Lusaka and Online, Zambia
Sugar Country Managing Director, Mrs. Rebecca Katowa commended employees, Management and
Government for the performance of the company in spite of the impact the COVID-19 pandemic had
created on the environment. She thanked the Management team for executing the Company strategy
that was beginning to bear fruit and assured shareholders that the Company would continue to de-gear
the business and pursue meaningful investment opportunities. “The Company will continue to focus on
the right gearing for the business which ensures that we begin to look at further meaningful investment
opportunities”, she said.

Zambia Sugar Finance Director, Mr. Raphael Chipoma commended the stakeholders including
employees for the 52% growth in Revenue, moving to K2.121 billion compared to prior period. He
stressed that the growth in revenue was largely driven by a 28% growth in domestic sales volume and
a higher realization of export sales amounting to 51% (foreign exchange effect). “I also wish to
commend the hard working staff and Management for the focus on cost containment initiatives
introduced over the years which was now yielding fruit”, Mr. Chipoma said.

Mr. Chipoma emphasized that part of the growth in operating profit was attributed to 230% increase in
non- cash fair value of growing cane which was as a result of good yields following good rain season
and good supply of power from ZESCO. He also highlighted that although Finance costs were at K102
million, this was a 37% decrease compared to 2019 period, largely as a result of repayments of long
term loans echoing the Country Managing Directors’ comments that the Company would continue to de
gear the business which was now sitting at 32% compared to 40% in prior period.

The Company observed that COVID-19 pandemic would continue to have an adverse effect on the
business in the input side including the area of employee productivity and especially that major inputs
such as fertilizers, pesticides, process chemicals and factory spares continue to be imported and
border restrictions continue in neighbouring countries.