Mumias sugar company has extended its net losses for the full year ended June 2016 by 2% to Sh 4.73 Billion compared to a loss of Sh Sh4.64 Billion posted in 2015.
The listed miller however posted improved revenues which grew by 13.6% to Sh 6.3 Billion from Sh5.5 Billion posted in 2015 but cost of sales increased massively from Sh7.2 billion to Sh 8 Billion as of June 2016.
The 13.6% growth in revenue was on the back of increased sales in sugar & ethanol volumes coupled with higher sugar prices during the year. The company also noted that it had discontinued water production saying the “water business was no longer deemed viable.”
During the year, Mumias processed 1.216 million metric tonnes of sugar, a 9.4% growth from the previous period. Sugar produced increased by 6% to 75,000 metric tonnes with ethanol production up 20% to 12.4 million litres. Revenues from sugar and ethanol were up by 10% and 37% to Sh 5.1 billion and Sh 1.1 billion respectively.
The company is currently implementing a turnaround strategy with aim of returning to profitability said that the bailout funds from the government had helped improve some of its targets.
The company also noted that it had revalued some of its non current assets which mainly include factory plant and equipment and leasehold land resulting into a revaluation surplus of SH 9.2 Billion.
According to the company’s board, the outlook is positive despite a continued decrease in Kenya’s sugar production. As expected, no dividend was declared over this period.
