Illovo Sugar 250% profit jump draws mixed views

Illovo Sugar’s Soaring Profits: A Sweet Spot for Malawi’s Economic Growth

Post was last updated: December 7, 2025

Key Business Points

  • Illovo Sugar (Malawi) plc has reported a 250 percent increase in profit after-tax to K77 billion in the year ended August 31, driven by strong performance despite operational challenges.
  • The company’s turnover jumped to K476.7 billion from K126.2 billion, with total sugar production declining slightly to 203 786 metric tonnes due to heavy rainfall and maintenance works.
  • Stakeholders have expressed mixed reactions, with consumers questioning the profit amidst erratic supply and high prices, while investment analysts see it as a positive move for the economy, with potential for stronger dividend pay-outs and long-term growth.

Illovo Sugar (Malawi) plc has released its financial results for the year ended August 31, 2025, showing a significant increase in profit after-tax to K77 billion, up from K22 billion in 2024. The company’s strong performance was driven by a turnover of K476.7 billion, despite operational challenges such as heavy rainfall and maintenance works, which affected sugar production. The total sugar production declined slightly to 203 786 metric tonnes from 222 190 metric tonnes in the previous year.

The company’s crushing season started late due to irregular cane supply caused by prolonged rainfall and maintenance works, with full-scale production resuming in mid-July instead of April or May. This led to erratic supply and high prices of sugar in the domestic market, affecting consumers. The price of a kilogramme packet of sugar has now been set at K3 000.

Stakeholders have expressed mixed reactions to the company’s profit jump, with Consumers Association of Malawi executive director John Kapito questioning the profit amidst the challenges faced by consumers. He stated that "it is unbelievable that despite the production and distribution challenges that consumers went through in the year, Illovo has achieved such a profit jump." On the other hand, Stockbrokers Malawi Limited equity investment analyst Kondwani Makwakwa sees the strong profit performance as a demonstration of improved efficiency and solid recovery in operations.

Financial market expert and economist Brian Kampanje believes that Illovo’s profit jump signifies that its turnaround strategies are working, and that the company can sustain such performance. He suggested that the company can increase revenue by renegotiating with the government on the distribution of sugar to ensure that more Malawians can access the product at competitive prices. The company’s shareholders had earlier approved a proposal to borrow $60 million from Sucoma Holdings Limited to settle its foreign exchange liabilities.

As zinthu zopusazi (business matters) continue to evolve in Malawi, it is essential for companies like Illovo Sugar to balance their profit margins with the needs of consumers. The company’s strong performance is a chimwemo cha ubwino (sign of goodness) for the economy, but it must also ensure that its operations are kulima kwa mtundu (fair and just) for all stakeholders involved. With the potential for stronger dividend pay-outs and long-term growth, Illovo Sugar is well-positioned to boost capacity, stabilize output, and strengthen its growth outlook, making it an attractive investment opportunity in the soko la Malawi (Malawian market).

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Vanessa Banda
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