Investment case
Illovo is Africa’s leading and largest sugar producer, comprising agricultural estates and 16 manufacturing sites across six southern African countries, with the first origins of the group’s history dating back to 1891.
The primary objective that drives our investment case is to enhance the wealth of our shareholders by optimising the long-term returns and growth of the business, against the background of achieving a sustainable, balanced and integrated economic, social and environmental performance.
| CLEAR VISION AND STRATEGIC FOCUS WITH PROFITABLE GROWTH OPPORTUNITIES |
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- To be a world-class, low-cost and highly efficient organisation, operating on the African continent
- Driving down costs and repositioning products higher up the value chain
- Diversification of revenue streams
- Positioning for long-term growth demand through expansion of existing operations and acquisition opportunities
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| PEOPLE ARE OUR STRENGTH |
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- 14 top-level independent and non-independent directors with combined Illovo board experience of 112 years and direct sugar experience of 145 years
- Proven ability to execute strategies and deliver financial performance
- 12 972 permanent employees and 18 965 seasonal employees with embedded capabilities
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| PRODUCTS AND MARKETS THE KEY |
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- Quality and cost effective production of raw and refined sugar, speciality sugars and syrups together with high-value, niche-market downstream furfural and ethanol products
- Strong and high-growth domestic, preferential and regional markets with proven expertise for outbound logistics
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| SUSTAINABILITY – PROTECTING OUR FUTURE AND THAT OF OUR STAKEHOLDERS |
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- High community impact, core values aligned to social and environmental responsibility
- Continued development of Illovo's cane sugar sustainability model, making maximum use of all input material with minimum waste products
- 90% of group's energy requirements produced from own generating capacity from renewable resources
- Best performer in the High Environmental Impact category and inclusion in the JSE's 2013 Socially Responsible Investment Index
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| STRONG FINANCIAL POSITION AND PROSPECTS |
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- Quality of earnings, strong cash generation, high interest cover
- Strong balance sheet with low gearing – positioned for growth
- Attractive dividend yield
- Significant economic, operational and market scale – inherent leverage
- Illovo's presence in African sugar production is widely recognised and is the company of choice among governments wishing to develop/expand their own sugar industries
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Comparative share prices index:
Illovo, JSE Food Producers Index,
JSE All Share Index
(1 September 2006 to 22 May 2014)
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Illovo |
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JSE Food |
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JSE All Share |
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