Half year profits for Kenya’s leading sugar producer are on an 8 month high. According to the company’s annual report, profit after tax for the half year ended 31 December 2011 amounted to Ksh866.6 million. The company’s stock gained 2.24% to close at Ksh6.85 today. Their total comprehensive income was up Ksh881.3 million from Ksh829.6 million the previous year.

Net revenue fell to Ksh6.9 billion down 5% from Ksh7.3 billion the previous year. Heavy rains are reported to have hampered transportation between the months of July and December 2011. Sugarcane crushed was 27% less than the previous year. The co-generation plant revenue was down 4% due to insufficient fuel blamed on the decline in cane crushed during that period.

The company reported that in spite of all these pitfalls as well as the rising rate of inflation, the results were commendable. According to the annual report, the profits were prompted by Mumias Sugar’s initiatives to reduce the cost of production as well as improved sugar prices. The company has since contracted more than 104 000 farmers and injected over Ksh2.5 billion into cane development.