Volatile Lilangeni boosts foreign exchange gains

MBABANE – There has been a notable increase in foreign exchange gains for the Eswatini Sugar Association (ESA).

Foreign exchange gains of E26.3 million were realised compared to a loss of E4.29 million in the previous year.

This is primarily a result of a high favourable volatility of the Lilangeni against export currencies during the year. This is as per the 2020/21 integrated annual report. Interest paid decreased from E182.42 million to

E87.20 million. This was said to be a result of optimal funding; decreased prime lending rate; as well as good sales performance.

Expenses

“Administration expenses increased from E83.05 million to E109.4 million as a result of costs incurred for moving sugarcane from the Ubombo mill to the Simunye for purposes of crushing,” highlighted the report.

Other costs incurred were for the development of the ESA corporate and marketing strategy

as well as costs for developing the concept of the agri-business park. Meanwhile, the carrying value of plant, property and equipment increased from E146.10 million to E209.69 million as a result of additional investment on the Ubombo bagging and warehousing infrastructure.

Inventories, on the other hand, decreased from E511.8 million to E291.5 million as a result of lower closing stock quantities when compared to the previous year. Trade receivables fell by E133.4 million mainly as a result of good sales performance.