Double hit on the horizon
Tongaat* results saw the expected increase in sugar profits (almost doubling), although the stock will move still higher over the next 12 to 18 months as it continues the trend upward now that the drought has eased. Unfortunately, the property part of the business saw profits down over 50% and with starch flat, as expected, the results only ticked up with headline earnings per share (HEPS) up a mere 3.6%. Land will always be lumpy and weak periods can be projected to be followed by stronger periods, so we should get a double hit to the upside in the next set of results with land and sugar adding to profits. I hold the stock and am happy with the position.