TIBIYO MAKES E288M NET PROFIT

MBABANE – Tibiyo Taka Ngwane announced a net profit of E288 million yesterday, as the company released its financial performance for the year ended April 2021.

This showed an increase of E66 million from the previous year’s performance. As part of its objectives, Tibiyo stated that it existed to complement government in fostering economic independence and self-sufficiency. The company holds investments in different portfolios across the country, but is heavily entrenched in the sugar industry where it derives more than 80 per cent of its income. Tibiyo is held in trust of the Eswatini Nation by His Majesty the King.

Performance

In outlining the company’s performance, Chairman of the Main Committee Prince Fipha said the good performance was as a result of increased dividend income. This is income received from companies where Tibiyo holds shares or stocks. As stated in the 2020-21 annual report, Tibiyo has stakes in a variety of companies. It holds a 50 per cent stake in Royal Eswatini Sugar (RES) Corporation and a 40 per cent stake in Ubombo Sugar Limited.

The company also has holdings in Bhunu Mall (40.79 per cent), Eswatini Development Finance Corporation, also known as Fincorp (20 per cent), Simunye Plaza (25 per cent), Eswatini Beverages Limited (40 per cent) and many others. “Total assets grew from E2.3 billion to E2.5 billion, mainly due to growth in investments and current assets. However, net income as a percentage of total assets declined from 11.65 per cent to 7.39 per cent in the current year,” said the prince. Prince Fipha said the success of the company could be attributed to the commitment and dedication of the executive management, management and the entire staff of Tibiyo. He said this was also made possible by the leadership and management of Tibiyo’s investee companies and subsidiaries.

Survived

“The organisation has survived a full year with the cloud of COVID-19 overhead. What was hoped to be a brief spell has proven to be an ever present phenomenon, which the organisation has been forced to embrace,” he said. The chairman noted that the vicious waves of COVID-19 hit the country hard during the past year and affected businesses across all industries, some more adversely than others. “Tibiyo has managed to remain afloat in spite of many of its subsidiaries being hit hard by the pandemic,” he said. By subsidiaries, the chairman was referring to the companies that are 100 per cent owned by Tibiyo. They include Dalcrue Agricultural Holdings, Sihhoye Estate and Sivunga Estate (both sugar), The Royal Villas, Tibiyo Properties (Pty) Ltd and the Eswatini Observer Group of Newspapers. Managing Director Absalom Themba Dlamini stated that the company had substantial interest in sugar markets globally, as a result of having invested heavily in the industry.

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