MBABANE – RESCorp has cautioned shareholders that its earnings for the financial year ending March 31, 2026, are expected to be materially lower than those recorded in the previous year.
The Royal Eswatini Sugar Corporation (RESCorp) urges investors to exercise caution when trading in the company’s shares.
In a cautionary announcement issued in line with the listing requirements of the Eswatini Stock Exchange (ESE), the company revealed that difficult trading conditions are weighing on its financial performance, signalling a notable decline compared to the year ended March 31, 2025.
RESCorp has projected a consolidated profit before taxation of approximately E519 million for the current financial year ending March 31, 2026.
This forecast, contained in the company’s interim dividend declaration notice released late last year, reflects slightly weaker earnings compared to the E553 million profit before tax achieved in the previous financial year.
The cautionary statement comes as the sugar producer continues to navigate a complex operating environment shaped by volatile global commodity markets, subdued demand in key segments and persistent geopolitical uncertainties.
The anticipated decline in earnings builds on an already challenging 2024/25 financial year for RESCorp, where profitability weakened significantly despite relatively stable production performance.
According to the company’s 14th Integrated Report, total comprehensive income attributable to shareholders fell to E414.3 million, marking a 35 per cent decline from the record E641.8 million achieved in the prior reporting period.
RESCorp Managing Director Nick Jackson acknowledged the difficult environment, noting that price increases for both sugar and ethanol failed to keep pace with inflation.
“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,” he said.
The impact of global macroeconomic dynamics has been further exacerbated by geopolitical developments. Ongoing conflicts and trade tensions, including the Russia-Ukraine war and instability in the Middle East, have disrupted global supply chains and contributed to price volatility across commodities.
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Strategic response, future outlook
MBABANE – RESCorp is actively pursuing strategic initiatives aimed at strengthening its resilience and positioning the business for long-term growth.
A key component of this strategy is diversification, particularly within the ethanol and renewable energy sectors.
The company has indicated plans to expand its footprint in ethanol derivatives and explore opportunities in energy generation.
These initiatives are aligned with its broader strategic vision to reduce reliance on traditional sugar revenues and tap into emerging markets with higher growth potential.
In addition, the company is focusing on improving agricultural efficiency and productivity through the adoption of modern techniques and data-driven approaches to farming.
Efforts are also underway to better understand and mitigate the impact of climate change on crop yields, including the use of historical weather data and advanced modelling tools.
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