Trading Statement

RNS Number:5711N
Tongaat-Hulett Group Ld
15 July 2003



                        THE TONGAAT-HULETT GROUP LIMITED

                 UPDATE ON THE IMPACT OF VALUATION ITEMS ON THE

                               HALF-YEAR RESULTS





At the Annual General Meeting held on 11 April 2003, it was announced that
earnings for the half-year to 30 June 2003 were likely to show a major reduction
over the comparative period last year.



The strength of the Rand and the reduction in commodity prices, especially
maize, together with the consistent application of accounting statements AC133
and AC112 will lead to a substantial charge to the income statement for the six
month period to 30 June 2003. The impact of the valuation adjustments which
relate to the recognition and valuation of certain contracts and balance sheet
items can now be determined and an update on the significant issues is included
below.



Maize has been secured to meet customers' requirements through to late 2004 and
the mark-to-market valuation adjustments required on these contracts, due to the
decrease in the maize price of some 40 to 45 percent in the last six months will
result in a charge to the income statement of R255 million.



Cash continues to be held offshore for growth opportunities and the application
of the exchange rate at 30 June 2003 will result in a reversal of R61 million of
previous unrealized translation gains.



There are also ongoing and less significant impacts arising, inter alia, from
the valuation of export debtors, inventories, foreign loan hedges and financial
instruments.



The magnitude of all period end valuation adjustments is such that it will
exceed core underlying operating earnings for the half-year.  This will result
in a loss at the headline earnings level for the six months to 30 June 2003.



Operating margins remain under pressure and each of the Group's businesses is
implementing actions to improve profitability.



The unaudited results for the half-year ended 30 June 2003 will be released on 4
August 2003.






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