SIT Revenue Crashes 44% as Sugar Production and Dividends Dry Up

The Sugar Investment Trust (SIT), a diversified holding company, saw its total comprehensive income skyrocket to Rs 2.77 billion for the year ending June 30, 2025. This dramatic increase, up from Rs 374.2 million the previous year, was primarily driven by a massive Rs 2.5 billion land revaluation gain, complemented by Rs 94.8 million in gains on financial assets.

Operating Revenue Plunges 44%

Despite the significant uplift from accounting adjustments, the group’s operational activity contracted sharply, with turnover falling 44% to Rs 369.5 million (down from Rs 663.4 million).

• The drop was attributed to several factors: lower sugar production, zero dividend payments from subsidiary investments, and the closure of its leisure park in February.
• Group gross margin remained robust at 55%, indicating strong cost control in the face of falling sales.
• Operating profit fell to Rs 303.7 million (from Rs 524.9 million), though this was buffered by a property revaluation surplus of Rs 258 million.

Net Profit Driven by Minority Interests

The group’s consolidated net profit reached Rs 190.4 million, a decline from Rs 382.4 million in 2024.

• Crucially, this profit relied heavily on a Rs 371.2 million contribution from minority interests.
• The parent company faced a far tighter situation, recording a loss of Rs 83.8 million after a Rs 174.3 million profit in 2024. Its revenue dropped significantly to Rs 27.9 million (from Rs 330.5 million), also impacted by the lack of dividend payments.
• The resulting earnings per share (EPS) slipped into the negative, standing at Rs -0.46 (compared to Rs 0.55 previously) on an unchanged capital base of 389.9 million shares.
• Pre-tax profit was Rs 199.6 million (down from Rs 399.9 million), after a tax charge of Rs 9.2 million.

Balance Sheet Growth and Future Plans

The revaluation gains led to significant growth in the balance sheet:

• Total assets swelled to Rs 8.1 billion (up from Rs 5.35 billion).
• Equity reached Rs 6.37 billion (up from Rs 3.65 billion).
• Financial costs contracted slightly to Rs 135.3 million due to partial loan repayment.

Looking ahead, SIT is planning strategic initiatives to stabilise performance:

• A sugar cane replanting programme targets 500 hectares by 2028 to boost productivity.
• A new residential development, Bois de Cannelle at Aure Côte d’Or (95 plots), is expected to revitalise property income.

Source: Defi Media