South Nyanza Sugar Company (SONY) has reported a pre-tax profit of KSh 113 million for the first quarter of the 2024/2025 financial year.
These figures mark a significant turnaround after a decade of losses. This is the company’s first positive pre-tax profit since 2010.
Speaking to the media, Managing Director (MD) Martine Dima hailed the achievement as a step toward reclaiming the company’s former glory.
Factors behind Sony Sugar's profits
The Migori-based sugar mill's improved financial performance is attributed to an increased daily crushing rate of over 2,700 tons and a 90% machine efficiency rate.
This follows a challenging 2023/2024 financial year, during which SONY Sugar recorded a loss of KSh 700 million, which paralysed many of its operations.
MD Dima, who assumed the role in July 2023, emphasized the importance of continued investment in the mill’s infrastructure and urged the national government to provide additional support for full maintenance to boost the 40-year-old mill’s crushing capacity to 3,000 tons per day.
Sugar cane farmers await payments
Despite the profit milestone, SONY Sugar’s cane farmers remain unpaid for October and November 2024 supplies, amounting to KSh 68 million and KSh 78 million, respectively. Dima attributed the delays to the December maintenance, which halted crushing for three weeks.
Additionally, the MD noted that the company has reduced its legal case backlog from 3,500 to fewer than 1,000 cases; these cases, initially amounting to over KSh 2 billion, now represent potential liabilities of about KSh 500 million after audit reconciliation.
Dima also appealed to the Migori County government to cease impounding the company’s vehicles over an unpaid cess levy accrued over four years. He noted that the current cess levy is up to date and urged the county to await the audit report submitted to the national pending bills committee for verification.
