Johannesburg-listed agricultural and agri-processing firm, Tongaat Hullet, on Monday said profits for the year ended March this year had improved due to an increased momentum in value land conversion and development activities.

The firm said revenues during the period under review had gained 9 percent from R14.3 billion ($1.3bn) to R15.7 billion ($1.5bn) also on the back of a robust performance from starch operations boosted by local maize that was competitive with global prices and good exchange rates.

Headline earnings for the year to March moved up 4 percent from R1 billion ($96m) to R1.1 billion ($105.6m). South African companies use headline earnings to measure their profitability.

In addition, the company said the past financial year had experienced sizeable surges in wage rates at the lower levels where the majority of man-hours are worked. There was also an increase in the price increases for “bought-in” goods and services.

Despite all these challenges, great achievement has been made to lessen the cost of sugar production as it relates goods, services, transport, marketing, salaries and wages.