Mumias Sugar has reported a widened full year net loss of 6.8 billion shillings, representing a 42 percent drop that the company blames on cane shortage.
The miller’s revenue plunged from 6.3 billion shillings a year ago to 2.1 billion shillings.
Mumias Sugar has over the last three years been posting losses and this year is not an exception.
The miller has reported a 6.8 billion shillings full year net loss, which is more than the 4.8 billion shillings loss the company recorded for the previous year and 4.6 billion shillings loss in made in the year to June 2015.
This is despite the government pumping about 3.1 billion shillings over the last four years into reviving operations of the miller.
Mumias sugar blames its woes on cane shortage, something that saw the miller stop operations between April and June this year.
“To minimize losses associated with the above suboptimal factory operations, management made a decision to stop milling operations in the last quarter of the year to focus on cane development activities and factory plant maintenance,” said Dr. Kennedy Ngumabu, the Miller’s Chairman.
“The strategy has since yielded fruit resulting in resumption of factory operations in October 2017 with the company recording significant improvement in cane deliveries, factory reliability and associated sugar and ethanol recoveries,” he added.
Turnover plunged three times 6.3 billion shillings a year ago to 2.1 billion shillings.