Illovo Sugar (Malawi) plc profit after-tax grew by 250 percent to K77 billion in the year ended August 31, drawing mixed reactions from stakeholders in a year sugar scarcity pushed up prices and affected market supply and domestic consumption. Published financial results for the financial year ending August 31 2025 show that the profit has jumped from K22 billion in 2024. “For the financial year ended August 31 2025, the company delivered strong performance, achieving a turnover of K476.7 billion up from K126.2 billion.
This growth was realised despite several operational challenges,” reads part of the financial statement co-signed by board chairperson Jimmy Lipunga and managing director Ronald Ngwira. The statement further indicated that total sugar production declined slightly to 203 786 metric tonnes (MT) from 222 190MT primarily due to persistent and unusually heavy rainfall between April and July 2025. The Malawi Stock Exchange-listed sugar manufacturer acknowledged that it started its crushing season late due to irregular cane supply caused by prolonged rainfall and maintenance works such that full scale production resumed in mid-July instead of April or May.
Meanwhile, stakeholders have expressed mixed reactions with consumers questioning the profit in a year the commodity supply at the domestic market was erratic while investment analysts believe the strong performance is a positive move to the economy. In an interview on Tuesday, Consumers Association of Malawi executive director John Kapito said such profits are being made at the expense of consumers who were forced to buy the commodity at high price when it was scarce. He said: “It is unbelievable that despite the production and distribution challenges that consumers went through in the year, Illovo has achieved such a profit jump.
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“Consumers experienced one of the worst sugar challenges from scarcity to high prices and to learn that they are able to punish consumers with such exploitative profits, something should be wrong with our economy.” But in a separate interview, Stockbrokers Malawi Limited equity investment analyst Kondwani Makwakwa said Illovo’s strong profit performance demonstrates improved efficiency and a solid recovery in operations. “The improved profitability also raises the prospect of stronger dividend pay-outs. With these investments, Illovo is better positioned to boost capacity, stabilise output and strengthen its long-term growth outlook,” he said.
On his part, financial market expert and economist Brian Kampanje said Illovo’s profit jump signifies that its turnaround strategies are working and that it will be able to sustain such a performance. “The company can increase revenue if it can renegotiate with the government on the distribution of sugar to ensure that more Malawians are able to find the product at competitive prices than what is being offered by the vendors in the black market structure,” he said. Earlier this year, the firm’s shareholders approved the proposal to borrow $60 million (about K105 billion) from Sucoma Holdings Limited, a company which owns 76 percent stake to settle its foreign exchange liabilities following its limited sugar exports and foreign exchange scarcity.
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