Investment case

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

To be a world-class, low-cost and highly efficient organisation, operating on the African continent, with a clear, four-point focus on:

  • Developing new markets
  • Cost reduction
  • Diversification through downstream expansion
  • Preparing for long-term sugar expansion 
People are our strength
  • 14 top-level independent and non-independent directors with combined Illovo board experience of 124 years and direct sugar experience of 150 years
  • Proven ability to execute strategies and deliver financial performance
  • 12 838 permanent employees and 20 176 seasonal employees with embedded capabilities 
Products and markets the key
  • 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 and electricity co-generation
  • Strong and high-growth domestic and regional markets with proven expertise on the African continent for outbound logistics 
Sustainability – protecting our future and that of our stakeholders
  • 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
  • 89% of the group’s energy requirements produced from own generating capacity from renewable resources
  • Best performer in the High Environmental Impact survey and inclusion in the JSE’s 2014 Socially Responsible Investment Index 
Strong financial position and prospects
  • Quality of earnings and strong cash generation
  • 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 it is the company of choice among governments wishing to develop/expand their own sugar industries 

Top 10 shareholders 

Rank as at
27 March 2015 
Manager  Number of
ordinary shares 
ABF Overseas Limited   236 569 232  51.35 
Allan Gray Investment Council   74 023 679  16.07 
Public Investment Corporation   33 581 890  7.29 
Investec Asset Management  29 947 781  6.50 
Kagiso Asset Management (Pty) Ltd   8 944 518  1.94 
Colonial First State Global Asset Management  8 755 242  1.90 
Old Mutual plc  7 674 305  1.67 
The Vanguard Group Inc.  6 000 602  1.30 
Dimensional Fund Advisors  5 653 284  1.23 
10  Sanlam Investment Management   5 295 240  1.15 

Headline earnings

Comparative share prices index: Illovo, FTSE/JSE Consumer Services Index, FSTE/JSE All Share 31 March 2008 to 31 March 2015


Date: Wed, 15 July

Time: 14:00

Venue: Illovo Sugar Park

Notice of AGM


Contact Us

Illovo Sugar Park, 1 Montgomery Drive, Mount Edgecombe, KwaZulu-Natal

Tel: +27 31 508 4300