‘Unfavourable’ cost structure chokes Hippo

The sugarcane producer said escalating labour, cane pro­curement and production costs remain its biggest challenge, threatening long-term profitability even as the company posted stronger earnings for the year ended March 31, 2026.

HIPPO Valley Estates (Hippo Valley) is reeling from an unfavourable cost structure within its operations characterised by high cane and manpower costs, resulting in significant profit margin erosion.According to the group, costs are predominantly driven by an exorbitantly high minimum wage, an uncompetitive cost of cane under the Cane Purchase Agreement (CPA), and the division…

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