Sugar industry closes FY2026 with sales up 24% and exports more than doubled

Zimbabwe's sugar industry has closed its 2026 financial year (ended 31 March 2026) with strong commercial results. Total sugar sales reached 471,837 tonnes, a 24% increase from 380,531 tonnes the previous year, while production edged up 1% to 443,501 tonnes.

The numbers behind the growth

• Production: 443,501 tonnes, a 1% increase on the prior year
• Total sales: 471,837 tonnes, up 24% from 380,531 tonnes
• Local market sales: 379,319 tonnes, up 12% from 337,228 tonnes
• Export sales: 92,518 tonnes, up 114% from 43,303 tonnes
• The domestic market accounted for 80% of total sales, with exports making up the remaining 20%

The striking difference between 24% sales growth and just 1% production growth is explained by inventory release: the industry drew down carry-over stocks from the previous season. Both listed sugar companies confirmed this stock drawdown as the primary driver of the year's sales volumes, rather than any structural expansion in production.

Hippo Valley marks 70 years with a strong year

• Hippo Valley Estates contributed 234,975 tonnes, representing 49.8% of total industry sugar sales
• Revenue increased 15% from US$192 million to US$221 million
• Operating profit climbed 337% from US$8 million to US$34 million
• Profit for the year rose 79% to US$24 million, up from US$13 million
• The board declared a dividend of US1.50 cents per share
• The results coincided with the company's 70th anniversary, seven decades on from its founding as a citrus estate in 1956

Chairman Canaan Dube noted the company strengthened its performance despite a challenging operating environment, while Chief Executive Officer Tendai Masawi highlighted the milestone of achieving operational goals across agriculture, manufacturing, and commercial divisions in the company's anniversary year.

Efficiency gains and the outlook

• The manufacturing division improved energy efficiency by using bagasse to reduce coal consumption and exported electricity to the national grid
• Cane quality improved during the season, and higher yields and sucrose content allowed the milling season to be shortened
• Looking ahead, the company cited improving macroeconomic stability and continued investment in cane yields, power generation, water infrastructure, and plant maintenance
• The industry backdrop includes the Zimbabwe Sugarcane Industry Development Plan 2026 to 2035, which carries an estimated investment requirement of US$600 million to US$900 million, described as the largest planned commitment to Zimbabwe's agricultural processing sector since independence

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