News

Kenya’s Nyanza sugar could soon take over EAC demand

This post has already been read 5444 times!

By Muvunyi Timothy

newsdesk@greatlakesvoice.com

Nairobi, Kenya-Nyanza Sugar Company commonly known as Sony could soon lead the expanding sugar market in the region. Sony which is facing a steady trend of demand in Kenya and other export destinations in East Africa Community (EAC) member countries and COMESA markets attributes the growth to the improved quality of Sugar and molasses. But the companies managing director insists that even increased prices have added to the increased returns.

However, EAC people have been complaining and in fact in Uganda some took to the streets to demonstrate against increasing food prices including Sugar, a daily utility.

Sony Kenya’s second largest Sugar Company, though, recorded a Sh595m by June 30 from Sh242m in 2010 taxes not included. “The profits and expansion in growth is due to good branding, good price setting and improved branding of our products,” said Paul Odola, the Sony managing director.

He cited that the results in 2011 depict clearly the companies resilience to global competition and added operation profits have alone increased to Sh738 from last year’s Sh280. The figures indicate a growth in revenue of 43.1% to registering an increase to Sh5.8b from Sh4.1b of last year.

This is a 30.1% increase in sugar production-74,794 tones were output up from 51,189 tons which could be produced in same time last year. Sony is overwhelmingly shooting in both output and input where this year’s it managed to process 725,827 tons of raw cane, an increase from last year’s 558,054 tons of input.

This drastically altered the balance sheets to Sh5.6b from Sh3.8m and working capital subsequently changing from Sh382m in deficit to a Sh249m surplus. Odola managed to save the company fail to insolvency once recorded with an accumulative loss figure of Sh1.38b last now staked at Sh782m by end of June.

 

This post has already been read 5444 times!

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular

Great Lakes Voice (GLV) is an independent news network that aims to provide Africa's Great Lakes Region with a source of uncensored news.

Great Lakes Voice is owned and registered as The Voice, Ltd. and has an office at Press House (No. 37, KG 17 Avenue, Kigali).

Copyright © 2015 Great Lakes Voice

To Top