Zambia Sugar records 18% revenue growth despite drought, rising costs 

ZAMBIA – Zambia Sugar PLC has reported an 18% rise in revenue to K8.90 billion (US$397.45M)) for the year ended 31 August 2025, supported by a 23% increase in domestic sales and a 9% improvement in export realisation. 

Despite the growth in revenue, operating profit declined by 23% to K1.99 billion, compared to K2.57 billion (US$114.77M) in 2024. The company attributed the decline to the severe drought that affected cane production and to significant cost increases in key operational inputs. 

Profit for the period fell to K1.63 billion (US$72.79M), down from K2.06 billion (US$91.99M) in the previous year, reflecting higher finance costs and operational expenditures.  

Zambia Sugar described the year as one of the most challenging due to the worst drought in recent history, which coincided with the peak cane growth period, resulting in reduced cane yields and overall sugar output. 

To sustain operations amid widespread power shortages, the company secured a Power Supply Agreement (PSA) with ZESCO for premium imported power. While this ensured continuity in agricultural and factory operations, it led to unbudgeted expenditure of approximately K100 million (US$4.47M) due to a 67% higher power rate. 

The company also faced inflationary pressures that drove up costs for electricity, fertilisers, chemicals, fuel, and employee remuneration. Nonetheless, Zambia Sugar mitigated these challenges through strategic sales mix optimisation, improving value capture across both domestic and export markets. 

Finance costs rose to K116.6 million (US$5.21M), largely due to increased interest on working capital facilities and lease obligations. The company maintained a strong financial position, closing the fiscal year with K1.02 billion (US$45.55M) in cash reserves. 

Following the results, the Board proposed a final dividend of 109.6 ngwee per share, compared to 161 ngwee in the previous year. 

In addition, Zambia Sugar announced a K700 million (US$31.26M) three-year loan to support working capital and climate resilience initiatives, aimed at strengthening its operational base and stimulating wider economic activity across the value chain. 

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