Tongaat Hulett Limited. JSE: TON

Tongaat shares

Background of Tongaat Hulett

  • Tongaat Hullett is an agriculture business focused on sugar cane and maize, with a substantial land portfolio in KwaZulu-Natal, as well as sizeable animal feeds facilities and ethanol and electricity generation. The group also has operations in Zimbabwe, Swaziland, Mozambique, Namibia and Botswana.

  • The company’s history stems back to the mid-1800s, and the business as it stands today was formed through the merger of the Tongaat Group and the Huletts Corporation. Tongaat Hulett shares have a primary listing on the Johannesburg Stock Exchange (JSE) and a secondary listing on the London Stock Exchange.

  • The group produces a number of carbohydrate products for sale, many of which are interchangeable. Tongaat Hulett recorded revenue of R16.6 billion in 2016 and has a JSE market cap of more than R17 billion.

Tongaat Hulett Shares Growth Driver

  • Apart from its extensive agricultural operations and processing facilities, the group also seeks to convert land in the portfolio by responding to key demand drivers and identifying optimal end use.

  • The 2016 year saw a record performance from starch operations and land conversion and development activities, but the group’s financial data and Tongaat Huletts share price were negatively impacted by a significant decrease in sugar production as a result of poor growing conditions due to the ongoing drought in South Africa.

  • The starch and glucose division increased operating profit from R561 million to R658 million, as the company sought to buy into an improvement of the sales mix through value-added products. The business also benefitted from competitive maize costs, improvement in operational efficiencies, co-product recoveries and cost control. Land conversion and development operations increased operating profit from R829 million to R1.1 billion, through the sale of 121 hectares of land.

  • Sugar operations were drastically affected, with operating profit decreasing from R806 million to R124 million. Production volumes fell by 291 000 tonnes, whilst export revenue was affected by a lower international sugar price. This resulted in an overall group operating profit of R1.8 billion, dropping by 13.5% from 2015.

  • The group has forecast more favourable international sugar prices going forward, while aiming to re-establish the growth of sugar operations in domestic markets through improved growing conditions and benefits gleaned from new import protection measures. The company has said it will buy into a number of strategic thrusts to positively influence earnings and cash flow, and to gear the business for the cyclical nature of its operations.

Tongaat Hulett Group Investor Tip

  • Tongaat Hulett share price took a major dip on the live online stocks chart between 2015 and 2016, declining from a high of R173 to R83.50. Investors who decided to buy the shares at that low price have since seen good gains, with Tongaat Hulett share price climbing back up to just over R130 by November 2016. With improved growing conditions and better import controls likely to benefit the company, Tongaat Hulett shares should experience further growth and are a good buy.

Tongaat Hulett Major Shareholders

Public Investment Corporation, Allan Gray, TH Infrastructure SPV.

  • Sector

    Consumer Staples

  • Industry

    Food Beverage & Tobacco
  • Sub industry

    Food Beverage & Tobacco

How to buy Tongaat Hulett Group Shares

  • Tongaat Hulett : How to buy Tongaat Hulett Group Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy Tongaat Hulett shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Tongaat Hulett Holdings and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Tongaat Hulett Group shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in Tongaat Hulett.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
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