- Hippo Valley exported 15,711 tons of sugar in Q1 2025, compared to 3,385 tons in the same period last year
- Raw sugar sales fell 32% below target and 31% lower year-on-year, as beverage makers cut purchases and some industrial customers switched to imports or sweeteners
- Revenue climbed 16% year-on-year, supported by an 18% increase in sales volumes despite local tax headwinds
Harare - Zimbabwe’s sugar giant, Hippo Valley Estates has recorded a dramatic 364% increase in export volumes to 15,711 tons in the first quarter of 2025, compared to just 3,385 tons in the same period last year according to the latest trading update.
The surge provided a vital cushion against weaker domestic demand, where the government introduced a 0.001% sugar tax in January 2024, that was later reduced to 0.0005% per gram of sugar in January 2025 disrupting key markets such as beverages and confectionery.
Local volumes grew 4% to 81,620 tons, led by a 19% surge in the Sunsweet brand, while exports took a bigger share of total output.
The sugar tax, has pushed many manufacturers to scale back on sugar purchases or switch to artificial sweeteners.
Delta Corporation, Zimbabwe’s largest beverage producer, has been among the firms highlighting the burden of the levy having to pay US$31.2 million in sugar taxes during the period from February 2024 to December 2024 and US4.5 million in the first quarter of 2025, highlighting continuous ripple effect on the market.
For Hippo Valley, the impact was stark highlighted with raw sugar sales falling 32% below target and 31% lower than last year, as beverage makers cut demand and some industrial customers turned to imports.
In terms of production, sugar rose 15% to 659,181 tons, supported by higher milling crushing rates, a shortened 26-week season compared to 33 weeks in the prior year, and steady cane supplies from out-growers.
Cane quality also improved, with the Estimated Recoverable Crystal rising from 11.30% to 11.46%, while the cane-to-sugar ratio strengthened to 8.49 from 8.50.
As a result, revenue climbed 16% year-on-year, reflecting an 18% increase in sales volumes.
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