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Daily Nation : February 21st 2014
DAILY NATION Friday February 21, 2014 PERFORMANCE | Strategy paying off Mumias sugar cuts loss to Sh73 million After losing Sh1.1 billion previously, miller says full year results would be on the positive side BY RAMENYA GIBENDI @ramenyag firstname.lastname@example.org M umias Sugar Company has recorded a Sh73.4 million loss in the six months to December 2013. The miller, however, reduced the loss recorded over the same period in 2012, 14 times. Over the same duration, the firm made Sh1.1 billion loss, with the reversal of the trend indicating that the turnaround strategy is paying off. The listed miller now says its plan will put it back to profitability in its full year results as improved factory efficiency and diversification strategies begin yielding fruit. “We have adhered to all the re- quired diversification measures and thus ready for take-off. We are not going to engage in more capital investments,” the company chief executive officer, Mr Peter Kebati, said during a media briefing. Total net revenue grew by 31 per cent to Sh7.1 billion up from Sh5.4 billion over a similar period last year despite a 3 per cent decline in sugar prices. Mr Kebati attributed the fall in sugar costs to lower global prices and unfair trade practices, but said a 21 per cent rise in sugar production cushioned the company from potential revenue loss. Reduction in cost An increase in cane crushed ensured the miller registered a significant growth in earnings from ethanol distillery to Sh488 million down from Sh50 million last year. “Overall reduction in cost by 29 per cent is a result of management’s deliberate focus to control cost for efficiency and sustainability,” Mr Kebati said. Although the miller still faced competition for raw materials, an improvement in factory efficiency resulted in an increase in quantity of sugar extracted. 488 Millions of shillings that the sugar miller earned from ethanol up from the Sh50 million made during the previous period Business News 35 GARBAGE | Living off dirt Airtel Money and Visa launch new e-payment card BY NATION REPORTER Telecom firm Airtel has launched an electronic payment card that will see its subscribers withdraw and pay cash from their mobile money accounts from any Visa-branded ATMs. The Airtel Money Visa Card is tied to Chase Bank. Airtel and Visa are join- ing a trend that has seen a number of electronic payments launched in Kenya recently as companies go after a share of the country’s emerging market. Deepen its reach Visa hopes to deepen its reach in the local market while Airtel is trying to draw more subscribers to sign up for its mobile money service. “For our business, it is JEFF ANGOTE | NATION Young men load garbage onto a truck along Banda Street, Nairobi yesterday. Garbage collection and disposal has employed a large number of youth especially in the urban areas. just one more reason for customers to come on board Airtel Money,” the firm’s managing director, Mr Shivan Bhargava said. According to Commu- nications Commission of Kenya statistics, Airtel had Airte managing director, Mr Shivan Bhargava about 5.5 million subscriptions as of September 2013. Mr Bhargava said out of these, 300,000 had signed up for the company’s Airtel Money. Within a year, the firm said, it hopes to have recruited about 500,000 new customers to use Airtel Money Visa Card. Central Bank data shows that the value of transactions carried out using plastic money rose 14 per cent in 2013 to Sh2.8 trillion.
February 20th 2014
February 22nd 2014