Mumias Sugar posts Ksh.15B full-year loss, double from last year
Published on: March 14, 2019 08:43 (EAT)
Mumias Sugar Company has announced a Ksh.15.1 billion loss for the year ending June 2018. The results a clear indication of the tough times the miller is facing, the miller had requested for extension from the Capital Markets Authority to delay its results longer than usual. In the period under review, Mumias posted the Ksh.15.1 billion net loss, widening from the previous year’s Ksh.6.7 billion loss. The miller attributed this to Ksh.4.9 billion impairment of its plant and machinery as well as low production following plant shut down in the first and 4th quarter of the financial year under review. As a result, turnover for the year reduced to Ksh.1.37 billion compared to Ksh.2.09 billion it posted in the previous year. This occasioned by low sales volumes. Mumias however managed to reduce its administrative costs by 17% posting Ksh.1.9 billion s from 2017’s Ksh.2.3 billion shillings. Going forward the miller says it is banking on government crackdown on illegally imported sugar as well as resumption of zoning in the sugar belts to turn the tides. It is also in discussion with its lenders to restructure its debts to at least have some financial relief. This, as it also seeks a strategic partner to pump in more capital into the business.