MBABANE – The Royal Eswatini Sugar Corporation (RESCorp) has projected a consolidated profit, before taxation, of approximately E519 million for the current financial year ending March 31, 2026.
This is according to the company’s interim dividend declaration notice released this past week.
The forecast signals slightly weaker earnings compared to the E553 million profits before tax achieved for the year ended March 31, 2025, as captured in the company’s recently published 14th Integrated Report.
The integrated report, which covers the period from April 1, 2024 to March 31, 2025, paints a picture of a year fraught with economic volatility, geopolitical turbulence and price pressures in global sugar markets. Yet, it also reflects a company determined to navigate adversity while preparing for a future of growth and diversification.
Total comprehensive income attributable to RESCorp owners for 2024/25 fell by 35 per cent to E414.3 million from a record E641.8 million in the previous year. The decline was largely attributed to weaker sugar and ethanol prices, a firm local currency limiting export competitiveness and lingering economic shocks from global conflicts.
Managing Director Nick Jackson, in his commentary within the integrated report, admitted the year had been particularly challenging, but noted the corporation’s resilience:“Our profitability fell by 35 per cent compared to the previous year, primarily due to sugar and ethanol price increases lagging behind inflation, influenced by lower global prices and a stronger local currency. Yet, we emerged resilient, reinforcing our ability to navigate increasing adversities.”
The report highlighted that world market sugar prices retreated by 19 per cent, while ethanol sales volumes dropped 11 per cent amid difficult trading conditions in the Southern African Customs Union (SACU) market.
Compounding these challenges were geopolitical tensions-including trade tariff disputes, the ongoing Russia-Ukraine conflict, and Middle East instability-which disrupted supply chains and raised input costs.
Looking ahead, the report warned that geopolitical risks and currency volatility are likely to persist in the 2025/26 financial year, with both sugar and ethanol prices projected to deliver below-inflation increases once again.
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