RES CORP GENERATES E7.518BN PROFITS SINCE 2010

MBABANE – Over the past 14 years, the Royal Eswatini Sugar Corporation (RES Corp) has managed to generate profits to the tune of E7.518 billion.

These stats were shared by RES Corp Managing Director (MD) Nick Jackson, during the Mbabane Alliance Church Business Seminar held last Saturday. Jackson shared that the business has grown leaps and bounds since its inception in 1977. He highlighted that the company merged with Mhlume Sugar Company in 2001 and it currently employs 1 850 permanent and 2 500 seasonal and casual employees (99.6 per cent local). The MD shared that since 2010, the company has paid a total of E4.714 billion dividends, of which E2.94 billion was paid to local shareholders.

It is worth noting that the company’s ownership is structured in a manner that, Tibiyo TakaNgwane owns 63 per cent, RCL Foods owns 29 per cent, 10 per cent shares belong to the Government of Nigeria, 6 per cent is owned by the Government of Eswatini and 2 per cent is owned by others not specified. Most recently, the company remitted taxes to government to the tune of E600 million. The company further provided healthcare services to the tune of E28 million.

Rates

Last week, the company released its condensed results for the year 2023/24 ended March 31, 2024, which exhibited a strong financial position of the company. The higher sugar and ethanol prices, influenced by better prices in all markets and favourable exchange rates have assisted the RES Corp to realise total comprehensive amounting to E641.8 million.
The company reported that this is 259 per cent higher than the result achieved in 2022/23.

RES Corp further reported that the increase in the fair value of standing cane was E350.6 million higher than the prior year, reflecting the increase in expected sucrose volumes in 2024/25 after re-aligning the harvest season, as alluded to above and the higher sugar prices used in the valuation. The company further reported that the share of profit of equity accounted investees increased by 162 per cent with the acquisition of the 35 per cent interest in Enviro Applied Products (Pty) Limited is consolidated for a full year against one month in the prior year and a much-improved performance by Mananga Sugar Packers (Pty) Limited.

Cash generated from operating activities at E657.5 million was 70 per cent higher for the comparative period, bolstered by the higher sugar and ethanol prices, a stronger working capital position and reduced cash burn typically experienced when harvesting under wet conditions as in 2022/23.

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