SUGARCANE miller, Hippo Valley Estates Limited (Hippo) will prioritise exports during its second half year ending March 31, 2026, as the firm’s profit after tax (PAT) slipped 4% to US$17,52 million for the first half year ended September 30, 2025.
In terms of exports, Hippo has agreements to export into Botswana, Kenya and South Africa, quotas it is obligated to meet by its parent company, the South African agriculture and agri-processing firm, Tongaat Hulett Limited.
During its half year ended September 30, 2025, the firm recorded its lower profit after tax from a prior year comparative of US$18,18 million.
This was despite posting an increase of 10% in its revenue over the review period to US$112,93 million from the 2024 comparative of US$102,63 million.
The increase was largely driven by a 14% surge in industry sales volumes and the benefit of better average price realisations from the local market, where industry sales volumes shot up by 10%.
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According to Hippo, sales volumes were adequately supported by increased production in the prior year, which resulted in significant opening stocks and good current-year operational performances with production above the prior year and targets.
“More effort will continue on sales, particularly exports which are currently below management targets and consider alternative disposal plans to promote raw sugar uptake,” Hippo said in a statement attached to its half-year report for the period ended September 30, 2025.
“The business is proud to say, ‘sugar availability is guaranteed in Zimbabwe’ for both the local and export markets demand and this reinforces the need for the relevant authorities to discourage imports and support local production which additionally meets the health standards.”
Industry sugar sales were up 14% to 228 519 tonnes during the period under review, from a prior year comparative of 200 183 tonnes.
Of this amount, local industry sugar sales were 202 029 tonnes, while the exported amount was 26 490 during the review period.
“Industry export sales volumes, of which the company accounted for 49,8% (2025: 52,5%) increased by 61% compared to the prior year,” Hippo said.
“This was largely due to carry over export contracts which could not be fully delivered in the prior year following post-election civil unrest and associated logistical disruptions in Mozambique. There are more opportunities for more exports in the second half of the year.”
The firm’s sugar production rose 7% to 170 953 tonnes during the half-year period under review, from a prior-year comparative of 159 426 tonnes.
“The business continues to prioritise the local market, with excess sugar sold into the low-priced export markets,” Hippo said.
“While export sales volumes rose by 61%, a significant portion of the sugar earmarked for the export market remained in stock due to logistical challenges in transporting the sugar to the port through rail and this impacted on the potential to further increase revenue although claw back is anticipated in the second half of the year.”
Hippo’s focus remains on its environmental, social, and governance key milestones to sustain high efficiencies, produce good quality products, and maintain rigorous customer support for the remaining period and ensuing years.
