By KEPHER OTIENO
The country's leading sugar miller beat the turbulence in the sugar sector to post an impressive 83 per cent in pretax profits.
Mumias Sugar Company (MSC) hit a pre-tax profit of Sh2.1 billion this year, up from Sh1.2 billion last year.
Speaking during the 39th Annual General Meeting held at Tom Mboya Labour College in Kisumu on Friday, the company chairman, John Bosse, said the miller had processed 2, 318,080 tonnes of sugar up from 2,161,031 processed last year.
The firms Managing Director, Evans Kidero, attributed the strong showing to prudent cost control measures, favourable prices in the local market, and futuristic product diversification.
MSC, which controls about 60 per cent of the local market, has diversified into power production. The sugar miller currently produces 38 mega watts of electricity with 26MW being fed into the national grid.
Kidero said the firm was also establishing an ethanol distillery that will produce 22 million litres of ethanol per annum and a water bottling plant with a capacity of 20 million litres per annum. These projects are targeted for completion by the end of next year.
"We are looking forward to a busy 2011 when we expect to commission the ethanol plant in June, and the water bottling plant in December," Kidero said.
Shareholders called on management to ensure the improved earnings trickle down to farmers to motivate them to continue investing in a sector riddled with inconsistent cane supply.
They also ratified a proposal by directors to retain 0.40 per cent shareholding.
Dr Kidero promised farmers better terms as the firm’s earnings continually face north.
Last year, sugar shortage touched off steep price increase as supply from India and Brazil fell short of the global demand.
Kidero, however, discounted any fears of a possible sugar shortage in the market, saying the country has adequate stocks for the local market in case of any production shortfalls.
