Mumias Sugar has fallen deeper into losses. The company recorded a 2 per cent increase in losses for the year ended June 2016.

During the period under review, Mumias’ net loss stood at Sh. 4.7 billion up from Sh4.6 billion a year earlier.

There was a bright spot for Mumias with revenues rising 13 percent to Sh6.3 billion during the year. This was however negated by the high cost of sales which stood at Sh8 billion leading to a gross loss of Sh1.7 billion.

“The acute cane shortage experienced in quarter 4 saw the sugar production and recoveries heavily curtailed negating the benefits in the earlier quarters of the year. The cane shortage was largely due to widespread cane poaching,” Mumias said in a statement.

As part of the restructuring efforts, Mumias shit down its water bottling business which it deemed as un-viable.

The energy business was hit by an ongoing tussle with Kenya Power and was unable to sell any of the 14,692MWH generated during the year affecting revenue growth.

Sugar sales during the year rose to Sh5 billion during the year, with 1.2 billion metric tons of sugar processed.

There was also increased production of ethanol, which led to a 37 percent increase in sales to Sh1 billion.

“The company is also streamlining its internal operations with a view to optimizing resource utilization and improving efficiencies,” the miller stated.

Mumias share is currently trading at Sh1.10 at the Nairobi Securities Exchange.