Zambia Sugar has reported that it expects a better earnings when it publishes its half year results, according to a statement from the company.
“In accordance with the Lusaka Securities Exchange (“LuSE”) Listings Requirements, the Board of Directors of Zambia Sugar PLC (“the Company”) hereby advises the Shareholders of the Company that the Earnings per Share for the six-month period ended 28 February 2021 are expected to be approximately 183.01 ngwee per share compared to 10.01 ngwee for the six-month period ended 28 February 2020″, read a statement from the company issued by newly appointed Company Secretary Harriet Kapekele-Katongo in her maiden SENS announcement on behalf the Norman Mbazima lead Board on 20th May 2021.
Value has been created in segments that are influenced by good weather and increased demand from international markets. “The material movement in profitability is primarily attributed to an increase in non-cash fair value of growing cane, growth in export revenue and domestic sales volume growth”.
As always, the issued statement comes with a caution. “Shareholders are advised that the information contained in this Trading Statement has not been reviewed nor reported on by the external auditors of the Company. Accordingly, shareholders are advised to exercise caution when dealing in the Company’s Securities until publication of the results”.
Using the audited financials, analyst will have an opportunity to delve deeper into the numbers which may give an indication of how well the CEO Rebecca Katowa led team will perform when they announce their final year results in Q4 2021. “The Company expects its results for the six-month period ended 28 February 2021 to be released on SENS and published in the local press on or about Friday 28 May 2021.”
This first signal will have the management team pleased despite currency woes that have wreck havoc on many financial statements. According to the 2020 annual report, “exports to the regional markets were 169 000 tonnes, a 27% decrease over the previous year”. Without a doubt, the export market will be key in this years full year performance.