Today's Headlines
- Two Exhibitions Are On At Ramoma, Nairobi
- Country to Review Tourism Law
- Econet Wireless Finally Rolls Out
- Odinga Warns of Civil Unrest
- Mulee Rules Out Harambee Stars U-Turn
- Taking Up a Women's Agenda
- More Than 6,000 Christian Youth Converge for Prayers
- Catholic Church Outraged By MPs' Refusal to Pay Tax
- Pope Benedict Praying for Release of Abducted Nuns
- Thousands Flee Amid Fears of Border Clashes
- Malaria Rates Plummet Among Children
- Winning Against HIV Stigma Behind Bars
- First Congress of Federation of African Journalists a Historic Milestone, Says IFJ
- Archbishop Lele Urges State to Act as Food Crisis Bites
- Regional Workshop Focus Border Management, Irregular Migration
- Silverbird Acquires Kenya's Nu Metro, Starts Operations in Ghana
- Raila is Evil, Says Minister
- Man Charged With Abduction of Two Catholic Sisters
- UN Censures State On Torture
- Agencies Seek $390 Million to Offset Climate And Food Risks
- UN-Backed Scheme Gives 3,000 Prisoners Clean Water and Sanitation
- Samosa Festival is On in Nairobi
- Heartstrings in Another Comedy
- Govts, Investors Engage RVR in Rail Bid
- Mwangi Replaces Mwebesa At NSE
- Riepa Hosts Business Association
- ICTR Petitions UN for Arrest of Kabuga
- UBA to Invest SH360 Billion in Kenya
- Free Movement of People Too, Not Just Goods and Capital
- Judges Running Out of Money?
The Nation (Nairobi)
August 29, 2008
News Article By Joseph Bonyo
Mumias Sugar Company has reported a 17 per cent decline in its full year profits before tax for the year ended June 30, 2008.
The miller registered Sh1.5 billion in profits compared to Sh1.9 billion it reported in a similar period last year.
In statement of results released to the media on Friday, the company attributed the decline to difficulty in operating and trading conditions in the industry.
According to the statement, high costs of production due to increased fuel prices and limitations in transporting the raw materials to the factory led to the decline. The company also noted that the post election violence had led to reduced consumptions of sugar.
In the year the firm however had 11 per cent increase in sales turnover to Sh14 billion compared to Sh12.8 billion in the previous year. However, the domestic selling price for sugar was lower than in the previous year, squeezing the revenue margin.
"This has been due to the high influx of cheap imported sugar and unfair trade practices with undeclared sugar finding its way into the market," said Mr Meshack Guto, the company secretary in the statement.
The firm has in the recent past engaged in co-generation of power and production of ethanol as a means of diversification in the industry. Through the power project, the firm is in the process of increasing its generation from the current 12MW to 38MW, by the end of the year.
The project is expected to cost about Sh3.6 billion, with Sh2.3 billion funding already secured from Proparco, an international financial institution.
Meanwhile Sony sugar last year paid cane farmers Sh800 million for the deliveries of sugar cane.
According to the firms managing director Mr Paul Odola, the amount is expected to increase this year since the company had acquired additional 30 cane haulage tractors.
The new fleet is expected to increase the daily cane delivery capacity to 2,000 metric tones, up from the previous 1,800.
"Part of our key deliverables in our performance this year will be to see that farmers earn more from cane deliveries they make to us," Mr Odola said in a statement.
Sony Sugar serves the out-grower zone in the country, with farmers spread out in the six districts of Trans Mara, Kuria, Gucha, Homa Bay, Migori and Rongo.
