Cash-starvedMumias Sugar Companuy has sunk deeper into the red. The country’s leading sugar miller has issued yet another profit warning.
The management expects it to record a loss of at least Ksh3.4 billion this year, more than 25% higher than the Ksh2.7 billion posted last year. It attributed the fall to shortage of cane. It has been struggling with a cashflow crisis that forced the government to intervene and give it a Ksh1 billion bailout.
In yesterday’s trading at the Nairobi Securities Exchange (NSE), the company’s stock remained stuck at Ksh1.90 per unit despite a general downward movement of other counters which saw the 20-share index fall below the 4,500 mark.
The indicative Nairobi Securities Exchange (NSE) index closed at 4,482.2 points from the previous day’s 4,509.8 points with shares worth Sh520 million changing hands. Some of the counters on the losing side included insurer Pan Africa Holdings which announced a 32.5 per cent drop in net profits at the beginning of trading.
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