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TONGAAT Hulett’s Zimbabwean operations suffered the most from the El-Nino induced drought as operating profit for the year ended March 31, 2016 fell by more than 97.5 percent to 15 million rands ($955 000 using the current exchange rate of the US dollar to the SA rand) from 386 million rands ( $25 million) a year ago.
Sugar production in the period also slumped to 412 000 tonnes from 445 000 tonnes in the prior year.
The company also suffered from US dollar denominated costs on the local market, as the currency has evolved as the main unit of exchange on the local market.
A strengthening dollar also affected Euro-based revenues.
Tongaat exports some of its produce to the European market.
Online Reporter