By James Anyanzwa
The miller’s profit before tax declined to Sh1.76 billion, up from the previous year’s Sh2.64 billion.
But a tax credit of Sh249 million from the Government due to its operations outside the country’s major cities lifted Mumias Sugar Company’s (MSC) earnings to Sh2 billion
Managing director and chief executive Peter Kebati attributed the dismal performance to harsh economic environment characterized by a high rate of inflation that went up to 20 per cent, up from 12 per cent, high fuel prices, volatile currency market, which saw the shilling fall to as low as Sh107 against the US Dollar in October and heavy rainfall in the period between July-December 2011, which hampered transportation of cane from the fields.
Kebati also raised concerns over the rampant ‘cane-poaching’ syndrome, saying the company had lost 150,000 tonnes of cane during the period to some competitors who are engaging in unfair business practices.
“It was a very difficult year especially, in the first-half of the year,” he told reporters in Nairobi on Monday. Kebati observed that the world sugar prices have been on the decline and this is likely to result in lower prices in the domestic market.
He said due to increased supply, global sugar prices are in the range of US$600-US$650 per tonne.
According to the company’s audited financial statements, turnover fell marginally by 0.5 per cent to Sh18.8 billion, up from Sh18.81 billion.
Total comprehensive income for the year dropped 50 per cent to Sh2.01 billion from Sh4.08 billion in the previous year.