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Business Reporter
HIPPO Valley Estates Limited revenue for the year to March 31 rose by 8 percent to $146,8 million compared to $136,1 million in the same period last year on the back of a significant recovery in local market sales volumes.

The recovery of the local market compared favourably to the realisations from the depressed EU exports.

Domestic market sales for the year increased 109 percent to 309 000 tonnes in the period under review from 148 000 tonnes the prior year. A total of 179 000 tonnes of raw sugar were exported, a decrease of 36 percent from the prior season which was at 279 000 tonnes, while 3 000 tonnes were sold into regional markets.

But sugar production decreased by 5 percent to 228 000 tonnes compared 239 000 tonnes as a consequence of no cane deliveries from the independent ethanol plant estate at Chisumbanje – 17 000 tonnes sugar equivalent in the prior year – and the negative impact of low dam levels for irrigation at the end of 2013, which only recovered in early 2014.

A total of 1 746 000 tonnes was crushed during the season, of which 1 001 000 tonnes was company cane and 745 000 tonnes was delivered by surrounding out-grower farmers in the year under review. In the previous year 1 875 000 tonnes of cane were crushed during the season.

Overall recovery at 88,2 percent improved from 81,7 percent achieved in the previous season.

The company said the continuing improvement in overall mill performance is a direct result of the extensive mill refurbishment programmes carried out over the past four seasons.

The company expects improved yield and increased cane production into the future as the company ploughed out and replanted 3 462 hectares. Overall the industry, inclusive of the private farmers, ploughed out and replanted a total of 6 506 hectares during the current season.

Hippo Valley net profit for the year amounted to $7,3 million down from $9 million in the prior year.

“The benefit of cost reductions over the past two years, increased local market sales, together with the negative cane valuation effect recorded in the income statement last year amounting to $3,9 million not being repeated this year where a gain of $6,6 million was realised, were offset by a reduction in sugar production volumes and lower prices on exports,” the company said.