ILV - Illovo Sugar Limited - Trading Statement

ILV - Illovo Sugar Limited - Trading Statement                                  
ILLOVO SUGAR LIMITED                                                            
(Incorporated in the Republic of South Africa)                                  
(Registration number 1906/000622/06)                                            
Share Code: ILV                                                                 
ISIN: ZAE000083846                                                              
("Illovo" or "the company")                                                     
TRADING STATEMENT                                                               
This statement is issued in compliance with the Listings Requirements           
(Section 3.4(b)) of the JSE Limited.                                            
In terms of established practice, Illovo issues financial statements for        
the first six months of its financial year which reflect both actual            
results based on International Financial Reporting Standards and, because       
the sugar industry is a seasonal agriculturally-based business, results         
which are determined on a sugar season basis. It is the directors`              
opinion that the results for the first half of the financial year,              
determined on a sugar season basis, provide a better basis for evaluating       
the financial performance of the company, noting that for the full year         
there is no difference between actual results and those determined on a         
sugar season basis.                                                             
Illovo`s results are generally impacted by production volumes, domestic         
market sales, the level of the rand compared to other currencies, and by        
the world price of sugar.                                                       
Actual results for the six months ended 30 September 2009, compared to          
the corresponding period last year, will particularly reflect the               
positive impact of improved world market sugar prices in South Africa,          
increased sugar production in Zambia following the commissioning of the         
major expansion at Nakambala, and increased sugar production and                
favourable sugar sales pricing in Tanzania.  Accordingly, operating             
profits for the period are anticipated to increase by around 35%, whilst        
actual headline earnings per share ("heps") and earnings per share              
("eps") for the first six months of the current financial year are              
expected to be between 25% and 30% higher than those of the corresponding       
period last year.                                                               
However, for the first six months of the financial year, determined on a        
sugar season basis, heps and eps are expected to be similar to those of         
the comparative period of the previous year.  This is due to the value of       
the rand, which is currently projected to remain significantly stronger         
for the remainder of the current year compared to the second half of the        
previous financial year. This will impact negatively on foreign currency        
denominated export revenue in respect of both sugar and downstream              
products, as well as the conversion of foreign subsidiary company profits       
into rands, for the season as a whole.                                          
Operating profits for the full year ending 31 March 2010 are expected to        
be between 10% and 20 % higher than those of the previous year.  Group          
financing costs for the year will reduce following the receipt of rights        
issue proceeds in September 2009, but as a result of taxation normalising       
at around 30%, headline earnings are anticipated to be similar to those         
of the previous year.  The higher weighted average number of shares in          
issue after the rights issue, which provided for the issue of 30.83 new         
shares for every 100 existing Illovo shares, is expected to dilute heps         
and eps for the full year by between 10% and 20% compared to the previous       
financial year.                                                                 
The forecast financial information on which this trading statement is           
based has not been reviewed or reported upon by the company`s auditors.         
The company`s Interim Report for the six months ended 30 September 2009         
is due to be released on 19 November 2009.                                      
Mount Edgecombe                                                                 
3 November 2009                                                                 
Sponsor                                                                         
JP Morgan Equities Limited                                                      
Date: 03/11/2009 09:01:07 Supplied by www.sharenet.co.za                     
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