TIBIYO’S E116 MILLION PROFIT

MBABANE – Tibiyo TakaNgwane,  a company held by the King in trust for the Swazi Nation, made E218.1 million from its operations in just one year.

This was during the year up to March 2012. According to the company’s latest financial report, revenue increased by at least 46.6 per cent during that period.
It stood at E148.4 million in 2011.
Profits recorded in 2012 amounted to E116 million.

Expenses

Tibiyo accumulated expenses from third party managed projects, which amounted to E68 million.
However, it had to assist some of its struggling companies like the Swazi Observer and the Royal Villas hotel.
Impairment of loans and accounts receivable and subventions to its companies amounted to E11 million.

The increase in revenue was also complemented by a significant increase in the total assets of the company.
Deduced from the value of assets, as at the end of 2012, Tibiyo was worth E1.39 billion. The company’s assets increased by at least 3.5 per cent from E1.34 billion recorded in 2011.
In 2012, the company’s liabilities stood at E80 million.

The company’s annual report for 2012 was presented to His Majesty the King recently.
Prince Logcogco, Chairman of the Tibiyo Board of Trustees, in his report to the King, said the increase in revenue was largely due to a good dividend income stream from the investee companies.
He said Tibiyo partnerships recorded an increase in profits of 132.2 per cent. The company fully and partly owns 23 major companies operating in the Swazi economy.
These companies trade across the Swazi economic spectrum in the manufacturing, property, agriculture, mining and tourism industries.
Tibiyo was established by Royal Charter in August 1968 by King Sobhuza II.

At the time it was said that it was being established for government’s national development efforts.
Tibiyo has many investments in property, agriculture, the media and other industries.
Some of the companies owned or part-owned  by Tibiyo  are Swaziland Beverages, Parmalat Swaziland, Dalcrue Agriculture Holdings (Pty) Ltd, Nedbank (Swaziland) Limited, Swaziland Development and Finance Corporation (FINCORP), the Simunye Plaza, Bhunu Mall and the Swazi Observer among others.

Themba Dlamini, Managing Director (MD) of the company, said the increase in revenue was largely due to a good dividend stream from companies in which Tibiyo invested.
“While the effects of the global economic downturn continued to be felt across all sectors in the country, Tibiyo was also not spared. However, it managed to achieve good results at the end of the 2012 financial year.”

He said sugar companies experienced good returns, which in turn had positive spinoffs for the conglomerate. “We also reinforced our efforts to contain costs which resulted in cost saving across departments.”
Dlamini said Tibiyo’s cash cow was largely the sugar cane industry.
The company has a stake in companies such as Ubombo Sugar (40 per cent stake), Royal Swaziland Sugar Corporation (50 per cent shares) and Inyoni Yami Swaziland Irrigation Scheme (IYSIS) among others.

Revenue

The MD could not disclose how much these companies had contributed in revenue. Dlamini said the sugar industry provided excellent returns, mainly because Swaziland continued to enjoy preferential market access to the developed economies, mainly in Europe.

According to the financial report, from its property portfolio, which includes Mona Flats, Bhunu Mall among others, the company made revenue amounting to E4.3 million.
In the same year, financial backing was made to the Swazi Observer, Royal Villas and Dalcrue Agricultural holdings. The financial backing for these companies was E765 431, E1.8 million and E8.8 million respectively.

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