The South African agricultural company Crookes Brothers announced in its interim results for 2017 that its profit after tax declined by 70% to R26.4 million from R89.4 million in 2016.

According to the company the decrease was “driven mainly by a decrease in sugar revenue and a write down in the cane biological asset value, both factors resulting from the aftermath of the drought conditions.

“The period under review has been challenging in the wake of the drought and under the prevailing tough economic conditions.”

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SUGAR DECLINE

The company noted a revenue decrease of 9.6 % to R240.5 million driven by a decrease in sugar prices in South Africa and Zambia and a decrease in production due to the drought.

According to the company, the decline was in line with expectations due to the impact of the drought on their sugarcane operations. However, a recovery from the current position is expected by the release their full year report in March 2018.

The firming of deciduous fruit markets, the first contributions from its macadamia and property projects, and the normal rainfall that is predicted for the northern region of SA, is expected to drive the recovery of the company’s financial situation.

• Crookes Brothers is a South African country with operations in the sugarcane, deciduous fruit, bananas, macadamia industries and also entered the property market in recent years. The firm operates in KwaZulu-Natal, Mpumalanga and the Western Cape in South Africa, as well as in Swaziland, Zambia and Mozambique.

Source:
Moneyweb