The market is unimpressed with Tongaat Hulett's trading update
Earlier today, Tongaat Hulett released a trading statement for the six months to the end of September. In the statement, the sugar producer said that headline earnings per share are to be 1.2% higher than the previous comparable period. But the market was unimpressed, punishing the share swiftly lower. Let's take a closer look at what the trading statement revealed…
Shares in Tongaat Hulett slid today after the company said “its half year performance will be slightly below that of a year ago,” says IOL
. It put this down to sugar prices and “more imports at home”.
The sugar producer expects headline earnings “to increase by 1.2% to R663 million” for the six months to the end of September, reports MoneyWeb
. That’s marginally higher than the R655 million reported for the “same period last year”.
But headline earnings per share for the period will be 2% lower at 592c, adds MoneyWeb
. That’s down from 605c from the previous year.
Tongaat Hulett shares fell over 4%
Shares in Tongaat Hulett closed 4.25% lower at R120.86. It appears investors are not happy with the latest update from the sugar producer.
On a more positive note, the company said that “it expects sugar production this season” to be the best in the last decade, notes IOL
The sugar producer expects net profit per share “to be 632c,” up from the 606c reported for the same period last year, says BDLive
. It also expects operating profit to “be 7% higher at R1.381 billion”.
It also noted that land conversion and development operational profit would increase “to R512 million from R246 million,” reports BDLive
. This follows “sales in the Cornubia and Umhlanga areas and a major sale of land” near Durban International Airport.
We will have to wait until next week to see the interim results. They are due out on the 11 November.