A profit warning by Illovo Sugar Malawi, has outlined that profit for the financial year ended August 31, 2020 may drop by 65%.

The company’s Secretary, Maureen Kachingwe, attributed the above to declining sales on the local market which was caused by an influx of illegally imported sugar, among others. On the local market however, customers complained of overpriced Illovo Sugar as the managing director Mark Bainbridge said the company was competing against excessive sugar from other countries on the world market. “Currently, the excess sugar is sold to South Africa and deficit markets in the region [like Kenya, Tanzania, Rwanda, Burundi and DRC].” he said.

On the other hand, the profit warning has outlined that the coronavirus pandemic has negatively affected exports of sugar, hence a factor to the loss.