Listed sugar producer Tongaat Hulett said on Monday that its profit from operations rose to R443-million for the half-year ended June 30 2008.

The sugar giant said that revenue rose to R3.1-billion while headline earnings of R252-million were recorded.

A dividend of 160 cents per share was declared.

Tongaat Hulett said it was fast tracking the planning of renewable power generation at four of its eight sugar mills given the predictions "that electricity demand in South Africa will exceed generating capacity for a five to seven year period."

Turning to its Zimbabwe operations, the company said that current unsustainable macroeconomic conditions, including hyperinflation, foreign currency shortages, non-availability of key inputs and local price controls, "were challenging the profitability of the Zimbabwean operations."

Attention was currently on ensuring that the infrastructure and skills base were maintained.

"Tongaat Hulett's operations are positioned for a rapid turnaround once the macroeconomic conditions in Zimbabwe are restored," it said.

Sapa