(Updates with closing prices in sixth paragraph.)
Nov. 9 (Bloomberg) -- Mumias Sugar Co., Kenya’s biggest producer of the sweetener, said full-year profit rose 23 percent as costs declined and revenue increased. Higher prices for the commodity will sustain its performance, it said.
Net income grew to 1.93 billion shillings ($20 million) in the 12 months through June from 1.57 billion shillings a year earlier, the Mumias, Kenya-based company said in a statement published in the Daily Nation newspaper today. Administrative expenses dropped 21 percent to 1.15 billion shillings, while sales advanced 1.1 percent to 15.8 billion shillings, it said.
Sugar production was little changed at 235,812 metric tons from 235,792 tons a year earlier amid a continued increase in demand for the sweetener in Kenya. Consumption in East Africa’s biggest economy is currently 800,000 tons. Output by local millers of 550,000 tons coupled with imports is “not enough” to meet domestic demand, Mumias said.
“With the regional and global markets experiencing deficits, it is unlikely that there will be sufficient imports to cover the local deficit,” the company said. “As a result, sugar prices are expected to remain high.”
Raw sugar prices surged 61 percent in the 12 months through June. Yesterday, the contract for March delivery added 2.3 percent to 25.91 cents a pound on ICE Futures U.S. in New York.
Mumias shares climbed for the first time in seven days, rising as much as 7.2 percent to 5.95 shillings and closed 3.6 percent higher at 5.75 shillings at in Nairobi.
--Editors: Ana Monteiro, Karl Maier
To contact the reporter on this story: Paul Richardson in Nairobi at firstname.lastname@example.org.
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