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Company Results

Mumias Sugar Seeks Govt Bailout as its losses double to Ksh2.9 Billion

BY David Indeje · February 28, 2017 07:02 am

Mumias Sugar Company losses have doubled from Ksh 1.6 billion in 2015 to Ksh 2.9 billion in 2016 in its unaudited Financial Year results ended December 2016.

The company recorded a net revenue of Ksh 1.529 billion down from Ksh 2.997 billion, a decline of 49 percent over the previous year.

Segment infomration Mumias

The poor performance has been attributed to   shortage of raw materials (cane) and factory underutilisation resulting into high unit costs of production.

“The cane shortage experienced over the period saw the factor operating below capacity hence high cost of production,” read the statement.

“The company envisages cane shortage running through the second half of the year,” it adds.

However, to mitigate that, it plans an accelerated cane development with the core focus being on increasing land under the company control.

“The company is cautiously optimistic that it mid to long term future will improve.”

During the reporting period, it crushed 319,746 tonnes of cane, which is 45% lower compared to 581,541 tons crushed in the same period in 2015. Sugar produced was 12,197 tons, a decline of more than 67% compared to 36,510 tons produced in HY 2015.

Segment infomration Mumias

Revenue from Ethanol increased 4% to Sh 453 Million vs Sh 435 Million in HY 2015. Over this accounting period, Ethanol prices increased from Sh91 to Sh 95 currently.

David Indeje is a writer and editor, with interests on how technology is changing journalism, government, Health, and Gender Development stories are his passion. Follow on Twitter @David_Indeje David can be reached on: (020) 528 0222 / Email: info@sokodirectory.com

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