The Royal Eswatini Sugar Corporation Limited Reports 5% Increase in Cane Crushed Despite Adverse Weather Conditions.

Published On: December 21, 2023Company: The Royal Eswatini Sugar Corporation Limited (RSSC.sz)
What is the impact of the adverse weather conditions on the sugar and ethanol production?
The adverse weather conditions, which included excessive winter rains, wind, and hail storms, negatively impacted the crop production, leading to 1% lower sugar production. However, it indirectly benefited ethanol production because of the higher molasses to cane ratio which provided more feedstock for the distillery, resulting in 13% higher ethanol production.

Key Insights

  • Cane crushed in the mentioned period was 5% higher than the same period last year, reaching 3.36 million tonnes.
  • A negative impact on crop production was seen due to adverse climatic conditions like excessive winter rains, wind, and hail storms that damaged some 15,600 hectares of the plantation.
  • Sugar production was 1% lower at 422,047 tonnes compared to the previous year, despite a higher amount of cane being crushed.
  • Ethanol production and sales were higher, registering a 13% and 19% rise, respectively.
  • Total comprehensive income attributable to the company owners was E178.5 million, 41% lower than the result achieved in the previous year.
  • Operating costs were significantly higher due to inefficiencies in harvesting and crushing under adverse weather conditions, along with geopolitical cost inflation due to the Russia/Ukraine conflict.
  • The Group’s total assets amounted to E4.6 billion, primarily due to ongoing mill improvements and land development.
  • The financial outlook suggests a decrease in sugar production for the current year but better overall operating conditions leading to the expectation of significantly higher full-year financial results compared to the prior year.
  • The final dividend for the year ended 31 March 2023 of 51.9 cents per share was declared on 30 June 2023 and was paid in September 2023 to registered shareholders.

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About The Royal Eswatini Sugar Corporation Limited (RSSC.sz)

The Royal Eswatini Sugar Corporation Limited formerly (Royal Swaziland Sugar Corporation (RSSC) Limited) is the largest company in Swaziland with interests in sugar cane farming and manufacturing refined sugar products and ethanol for regional consumption and import to the rest of Africa and Europe. RSSC produces beverage-grade ethanol that is used in alcoholic beverages as well as pharmaceuticals and water treatment products. The company produces feints used to manufacture methylated spirits and bio gels. It also produces compressed molasses stillage used to produce liquid fertilisers. RSSC manages approximately 15 600 hectares of irrigated sugar cane on two estates leased from the Swazi Nation and manages an additional 5 000 hectares of half of third parties. It has capacity to produce 2.3 million tonnes of cane per season and about 430 000 tonnes of raw sugar per season. RSSC is a subsidiary of Tibiyo Taka Ngwane with headquarters in Simunye, Swaziland. The Royal Eswatini Sugar Corporation Limited is listed on the Eswatini Stock Exchange

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