The problems bedeviling Mumias Sugar have sky rocketed after the firm made a loss amounting to Sh4.7 billion.
According to the management, the loss is attributed to an acute shortage of quality cane particularly in the fourth quarter.
The firm’s management recommended that the company should not pay out dividends to shareholders.
This loss marks an increase from the last financial year where it recorded a net loss of Sh4.64 billion for the full year ending June 2015.
The miller, however, is said to have recorded improved revenue that rose to Sh6.28 from Sh5.53 billion registered in 2015, which translates to an increase of 13.6 percent.
The officials at the company said the increase in revenue was due to higher sugar and ethanol sales volume and realisation of higher net sugar prices and improved brand mix.
During the financial period , the company is said to have processed 1.2 million metric tones compared to 1.1 metric tones of sugar in the last financial year.
“Total overhead costs (inclusive of asset impairment of Sh1.39 billion) decreased by nine per cent to Sh4.5 billion. Marketing, distribution and administration costs alone decreased by Sh1.1 billion, a reduction of 33 percent compared to previous year,” read the statement signed by director Elizabeth Kyengo as quoted by the Star.