- Hippo Valley's sugar production rose by 19%
- For Q3 ended 31 December, production reached 439,542 tonnes
- Increased sales were driven by demand for Hullet's Sunsweet brand
- Retrenchment will occur in three phases, with the first phase concluding by February 2025
Harare-Hippo Valley, Zimbabwe's largest sugar heavyweight, has reported a 19% increase in sugar production for the third quarter (Q3) ended 31 December, reaching 439 542 tonnes.
This growth was fueled by a 10% improvement in sugarcane supply to 1.7 million tonnes from 1.6 million tonnes in the comparative period.
The 18% surge in cane deliveries was from plantations (miller-cum -planter).
As a result, domestic sugar sales increased by 22% to 279,112 tonnes from 227 855 tonnes.
The local sales were triggered by the demand for the Hullet's Sunsweet brand.
In performance, revenue increased by 16% from the prior year same period.
The increase was driven by strong recovery of local market sales volumes where higher price realisation were generated and the deliberate prioritisation of the local market in place of the lower priced exports.
The exports dipped by 53% to 32,003 tonnes from 67 527 tonnes.
‘’However , the increase in the cost of doing business which largely relate to cane purchases and manpower costs squeezed profit margins resulting in the need for the business to refine its operational strategies and implement sustainable cost containment’’, Chief Executive Officer Tendai Masawi stated .
To navigate this challenge , Hippo Valley launched Project Zambuko, which includes a phased employee retrenchment process.
‘’This decision, although difficult, is essential to align the company's operational capacity with the current economic reality’’, Masawi said.
The retrenchment process will occur in three phases, with the first concluding by the end of February 2025.
This strategy is aimed to ensure the company maintains financial viability in a challenging environment.
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