Mumias Sugar has reported pretax loss of Ksh 2.26 Billion ($22.23 million) in the six months ending December. 31, up from a loss of 2.08 billion shillings posted in the same period the same period the previous year.
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The firm says the loss was attributed to increased finance and administrative costs.Finance costs almost doubled from 379 Million to 733Million which was due to high interest rates and the weakening Kenya shilling. Administrative costs rose to Ksh 1 Billion compared to Ksh 821 Million posted in the same period the previous period.
Net revenue for the period rose 11% from a year ago to 2.98 billion shillings against 2014’s Ksh 2.68 Billion.
The miller crashed a total of 581,541 tons of sugar cane which was 31% higher than 443,425 tons crashed in the previous period. Mumias sold 36,333 tons of sugar which was 11% higher than 32,658 sold over the same period in 2014.
The miller blames the shortage of sugar in the western region as development of new and existing lands fell behind schedule due to economic pressures on cane farming. Mumias also says that cheap illegal imports was to blame for the increased losses.
The loss comes at a time when the miller is seeking an additional Sh2 billion bailout from the government.
However, Mumias says they are optimistic that they will improve their performance in the second half of the year as they have plans to restructure its long term existing loans involving rescheduling of payments to 7 Years which is inclusive of 2 years moratorium. The miller says they are also negotiating for an extra Ksh 2 Billion bailout from the Government.
