Mumias Sugar issues profit warning as cane shortage bites

kilam · 2017-03-01T13:37:55+00:00

TUESDAY FEBRUARY 28 2017 The Mumias Sugar Company has issued a profit warning even as it sank deeper in the red after reporting a half year net loss of Sh2.92 billion in the period to December 2016 compared to Sh1.56 billion the previous year. The NSE-listed miller says it foresees its earnings will drop by more than 25 per cent for the year ending June 2017. “Mumias Sugar Company Limited hereby announces that the projected loss for the year ending June 30, 2017 will be more than 25 per cent compared to the loss reported in the same period last year,” the firm’s chairman Kennedy Mulwa said in a regulatory filing Tuesday. The troubled firm attributes the losses to an acute shortage of raw materials that led to factory underutilisation, resulting in high unit cost of production. Losses nearly doubled At Sh2.9 billion, the company’s losses have nearly doubled, deepening by 49 per cent compared to the same period in 2016 where the miller incurred a net loss of Sh1.5 billion. The firm had a tough year in operations which saw some of its revenue streams, a water plant, discontinued with the company saying that the project was no longer viable. The NSE-listed sugar company has undergone financial difficulty owing to mismanagement, shortage of sugarcane and cash flow constraints. A forensic audit carried out by financial consultancy KPMG earlier found that there was massive misuse of funds, pilferage and tender manipulation that cost the miller Sh1.1 billion in illegal sugar imports. Mumias Sugar issues profit warning as half year loss deepens -

Thread starter kilam
Start date Mar 1, 2017

kilam

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Mumias Sugar issues profit warning as cane shortage bites

kilam

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