Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
The company attributes the drop to decline in the amount of sugar cane processed during the period which went down by 15 percent from 1.9 million tonnes of cane compared to 2.2 million in 2011/FILE

Kenya

Mumias profit drops, inefficiency to blame

The company attributes the drop to decline in the amount of sugar cane processed during the period which went down by 15 percent from 1.9 million tonnes of cane compared to 2.2 million in 2011/FILE

NAIROBI, Kenya, Aug 31 – Mumias Sugar Company has announced a 34 percent drop in its pretax profit for the full year ending 30 June 2012, from Sh2.6 billion in the previous financial year to Sh1.8 billion.

The company attributes the drop to decline in the amount of sugar cane processed during the period which went down by 15 percent from 1.9 million tonnes of cane compared to 2.2 million in 2011.

This was due to a decline in the cane availability.

However profit after tax increased by four percent from Sh1.9 billion in 2011 to Sh2 billion attributed to a tax credit as a result of commissioning the ethanol plants and the water plant.

Earnings per share went up by four percent from Sh1.26 in 2011 to Sh 1.31 this year. Gross turnover dropped to Sh18.7 billion compared to Sh18.8 billion in the last financial year.

The sale of power from its co-generation plant went up by 23 percent from Sh313 million in the previous year to Sh435 million in 2012.

In the period, the company produced 172,614 million tonnes of sugar down from 235,812 million tonnes produced in the 2011 financial year.

The company says the efficiency was lower and hence less sugar was recovered thus compounding the problem of declining cane supply to the last financial year.

As one of the strategies in the coming financial year, the firm plans to set up additional sugar cane buying centres in its cane zone to enable easier collection from the fields, minimize in –transit losses and reduce poaching of cane by its competitors.

The sugar firm also believes this will enhance efficiency of the factory due to a regulated and constant flow of cane crashing since the buying centres also act as buffer storages.

Advertisement. Scroll to continue reading.

Despite the challenges faced by the company during the period, board of directors has recommended a first and final divident of Sh2 per share to all its shareholders which will be paid to the sharholders on November 2, 2012.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...