With revenue now exceeding K3.3 billion, CEO Rebecca Katowa has weathered the storm inflicted by COVID 19 as her company announces its August 2020 year-end results to shareholders.
The reported financial year-end results are continued improved performance following the successful implementation of project PAAR. Operating profit was up by over K169 million. However, shareholders will be looking closely at the tax numbers as after-tax profit slumped to K235 million from K269 million due to higher effective tax. The change in tax regime comes following the tax agency reprofiling Zambia sugar from agriculture to manufacturing which effectively meant that the sugar company’s tax band went up.
“Zambia Sugar has previously been taxed as an Agricultural entity at a farming rate of 10%”, said Chief Financial Officer Raphel Chipoma in an email to Founder of Financial Insight. Zambia Sugar is now to be taxed at the manufacturing tax rate of 35%. “We eventually refilled our tax returns from 2013 after splitting the tax between Agriculture and Manufacturing”.
Despite the higher tax bill, Zambia Sugar’s board has proposed a dividend, keeping its promise of continued return on investment to its shareholders. “To approve the directors’ recommendation that a dividend of K0.24 per share is paid for the
financial year ending 31 August 2020”