Zimbabwe : Sugar sales surge 24pc as exports more than double
Zimbabwe’s sugar industry recorded 24% growth in sales to 472,000 tonnes in the year to March 2026, driven by stronger domestic demand and a 114% surge in exports. Hippo Valley Estates Limited reported higher revenue, profits and operational performance, while private growers increased sugarcane deliveries by 8%.
ZIMBABWE’S sugar industry recorded strong growth in the year to March 31, 2026, with total sales rising 24 percent to 472 000 tonnes from 381 000 tonnes in the previous year, driven by increased domestic demand and a sharp rise in export volumes.
According to Hippo Valley Estates Limited’s financial results for the year ended March 31, 2026, the company accounted for 49,80 percent of total industry sugar sales, contributing 234 975 tonnes to the overall volume.
The local market remained the industry’s largest destination, accounting for 80 percent of total sales, while exports contributed the remaining 20 percent.
In volume terms, local sugar sales increased by 12 percent, rising from 337 228 tonnes in 2025 to 379 319 tonnes in 2026. Export sales recorded even stronger growth, surging 114 percent from 43 303 tonnes to 92 518 tonnes over the same period.
Hippo Valley Estates chairman Mr Canaan Dube said the company continued to build on its operational momentum despite a challenging business environment.
“This was reinforced by sound decisions and navigating challenges more constructively. The board and management will continue to foster employee empowerment to drive resilience, trust and sustainable long-term business success,” he said.
The group’s financial performance reflected the strong growth in sales and operational efficiencies. Revenue increased 15 percent from US$192 million in 2025 to US$221 million in 2026.
Operating profit rose significantly by 337 percent, climbing from US$8 million to US$34 million, while profit for the year increased 79 percent from US$13 million to US$24 million.
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) also recorded substantial growth, increasing 131 percent from US$14 million to US$32 million.
The company credited the positive performance to an improved operating environment characterised by exchange rate stability and stronger consumer spending.
“Consumer spending was strong with household incomes having improved from the prior year. The climatic conditions were favourable, resulting in the right water levels in our supplying dams to support three seasons,” read the financial report.
In the agricultural sector, the combined area under sugar cane for the company and private growers rose three percent from 22 602 hectares to 23 255 hectares.
Private farmers continued to play an increasingly important role in cane supply.
“Private farmers registered an eight percent increase in cane deliveries, continuing a multi-year trend of increasing supply as a proportion of total cane supplied to the mill. Our manufacturing business unit recorded a one percent increase in sugar production, consistently operating with minimal plant downtime, optimising energy efficiencies,
leveraging on bagasse fuel to power the facility sustainably, reducing coal utilisation and exporting power to the national grid,” continued the report.
Hippo Valley chief executive officer Mr Tendai Masawi praised employees and stakeholders for their contribution to the company’s performance as it marked a significant milestone.
“After successfully achieving our operational goals in agriculture, manufacturing, commercial and other support services, the business celebrates its 70th anniversary with a positive outturn,” he said.
Looking ahead, the company said it remains cautiously optimistic, supported by signs of broader economic recovery and increased macroeconomic stability, while remaining alert to uncertainties within the operating environment.
“Notwithstanding these uncertainties, plans are in place to reinvest in the business to protect cane yields, consider alternatives for power generation, ensure water conveyance systems operate consistently and adequately fund plant maintenance. The business holds sugar stock levels considered sufficient to meet near-term local and committed export market requirements,” continued the report.
The board declared a dividend of US1,50 cents per share for the year ended March 31, 2026, payable in respect of all ordinary shares in the company.
On Project Kilimanjaro, the company said implementation remains under an administration structure now managed by an external board.
“While engagements with the Ministry are ongoing to finalise the remaining lease approvals, the 99-year lease application has, however, been overtaken by the new land tenure drive that is calling for title deed applications and the engagements are progressing,” the report disclosed.
To Read more about Sugar Industry continue reading Agriinsite.com
Source : The Herald
