Hippo Valley Estates’ domestic sugar sales rise 8% as exports face trade restrictions
Hippo Valley Estates says stronger local demand is offsetting export challenges, while lower sugar production and counterfeit imports continue to weigh on first-quarter operations.
ZIMBABWE – Hippo Valley Estates (HVEL) says Zimbabwe’s domestic market remained the cornerstone of its business in the first quarter ended June 30, 2026, accounting for 93% of total sales volumes as export markets faced trade restrictions and weaker global sugar prices.
The Zimbabwe Stock Exchange-listed sugar producer said local sales volumes increased 8% year on year, supported by targeted commercial initiatives and growing demand for its Huletts SunSweet brand.
“The local market remained the cornerstone of the business, contributing 93 percent of total sales volumes and recording an 8 percent increase compared to the prior year,” said Canaan Dube, board chairperson of HVEL.
“This growth was driven by targeted commercial initiatives that strengthened the Company’s leadership position in the domestic market, with the Huletts SunSweet brand continuing to gain momentum,” he added.
Hippo Valley said imported, down-packed and counterfeit sugar products, alongside reduced consumer spending in some retail segments, continued to create challenges in the domestic market.
“However, imported, down-packed and counterfeit sugar products, together with reduced consumer spending in certain retail segments, continue to present challenges,” the company said.
Export sales were weaker than expected during the quarter, with trade restrictions disrupting shipments previously destined for Kenya. Export programmes also started later than anticipated, further affecting volumes.
“While export markets remain strategically important for inventory management and foreign currency generation, the business continues to prioritise the domestic market, particularly in light of declining global sugar prices,” Hippo Valley said.
Kenya’s sugar imports have also declined significantly, with data from the Kenya National Bureau of Statistics showing volumes falling from about 210,000 metric tonnes in 2025 to approximately 60,000 tonnes during the first part of 2026.
Zimbabwe’s sugar exports to Kenya have previously reached significant levels, peaking at more than 61,000 tonnes in 2018 and nearly 92,000 tonnes in 2020.
“Management remains focused on expanding opportunities within regional export markets while closely monitoring developments in global sugar markets and logistics to improve future performance,” the company said.
Operationally, Hippo Valley described the first quarter as challenging after rainfall disruptions affected cane deliveries and harvesting at the start of the crushing season.
The resulting decline in cane supply contributed to a 21% year-on-year reduction in sugar production. Hippo Valley attributed the decline to the delayed start of crushing operations, periods of plant downtime and lower throughput.
Despite the lower production volumes, revenue remained flat at US$51.8 million, supported by a favourable product mix that helped offset lower sales volumes.
The company expects operational performance to improve as the crushing season progresses, with plans to optimise available cane supplies and improve factory efficiency.
Hippo Valley also said sustainability would play an increasingly important role in its long-term strategy as it seeks to strengthen resilience against operational, environmental and market-related risks.
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