I was unable to find their website. The Standard
Details from Mumias Press Release
Gross Turnover: KShs 14 Billion +14%
Net Turnover: KShs 11.6 Billion +14%
Operating Profit: KShs 2.1 Billion + 14.5%
Profit Before Tax: KShs 2.2 Billion +20%
Profit After Tax: KShs 1.53 Billion +18%
Earnings Per Share: KShs 2.99 +18%
Dividend Per Share: KShs 1.75 +17%
Management is cautiously optimistic about 2006/7 & beyond given:
- Lower world sugar prices compared to 2004-5
- Stiffer local competition
- New venture - electricity co-generation for sale
- New venture - Alcohol production
- Higher efficiencies through better management of operations
- Capacity enhancement (Expansion & Modernisation)
- Increased local demand to 1.2 Million tonnes by 2010
- Sugar levy (on farmers) which makes imports a larger threat
2006-7 will be much better given the recent rains starting in April 2006 which will enable higher & better quality cane production thus higher extraction rates.
2007 might see a world sugar deficit since Brazil has upped its ethanol production, Europe is reducing its production of sugar beets & China has become a net importer of sugar. This would lead to higher prices thus reducing competition from imports into Kenya.
Mumias' price (60/- on 8 Sep 2006) is NOT cheap! Current P/E is 20x which is higher than other well run firms e.g. BBK, KQ, etc.
Reduction in government ownsership os a huge PLUS since it decreases government interference. I hope the govt uses the funds to improve the INFRASTRUCTURE in Mumias' sugarcane growing regions!
I expect the shares to be sold at 50/- (approx 20% discount) to the prevailing price.