ZIMBABWE: Tongaat Huelett begins consolidation
Published: 07/03/2009, 7:32:50 AM
Tongaat Hulett has announced plans to consolidate its Zimbabwe sugar operations in its financial statements for the first half of this year, advising shareholders that the move was likely to have a sizeable impact on financial results, according to Zimbabwe's Financial Gazette.
"The consolidation of the Zimbabwean operations would be included in Tongaat Hulett's interim results, for the half-year ended June 30 2009," the group said in a cautionary statement to shareholders.
It said the consolidation followed the macro-economic changes that occurred when Zimbabwe dollarised, a move it said "restored key relevant fundamentals to the economy".
"This removed many of the distortions that existed in the Zimbabwean economy, which included unrealistic local market sugar price realisations, not receiving the full benefit of export proceeds, exchange rate uncertainty and foreign currency restrictions, shortage of inputs and the effects of extreme hyperinflation," the group said.