Mumias Sugar Losses: 15 months after its last financial results, Mumias Sugar has announced a Sh. 15 billion full year loss.
The loss results for the year ended June 2018 are more than twice the previous loss of Sh. 6.8 billion that was recorded in 2017.
The miller, which has in the recent years received billions of shillings in bailout from the government, blamed the losses on shortage of sugarcane for milling, which interrupted its operations.
The firm also attributed the steep rise in losses on a 101 percent increase on impairment charges to the plant and machinery to Sh. 4.9 billion from Sh. 2.6 billion charged in the previous year.
“The acute cane shortage significantly hindered the plant throughputs with cane delivered dropping by 32 per cent to 283,435 tonnes compared with 417,347 in the last financial year,” says the board’s chairman Kennedy Ngumbau.
The turnover for the year under review declined to Sh. 1.37 billion down from Sh. 2.09 billion in the previous season. The Mumias Sugar Losses have now become an annual occurrence with no signs of the company ever recovering.
The Mumias Sugar stock on the Nairobi Securities Exchange has not only brought mega losses to investors but is currently trading as a penny stock at 60 cents per share.