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NEWS & CURRENT AFFAIRS

The Nairobian

Sony Sugar posts Sh113m profit after a decade of losses

Business

By Anne Atieno | Jan 11, 2025

**An aerial view of Sony Sugar Company in Migori County.** [File, Standard]

South Nyanza Sugar Company posted a pre-tax profit of Sh113 million within the first quarter of the financial year 2024-2025 after a 14-year hiatus. This comes as it continues to grapple with farmer’s arrears, legal battles, and other debts.

The miller attributed the profit to a high cane conversion ratio, and improved cane supply and production efficiency. Managing Director Martine Dima said the earnings were made after more than a decade of losses.

“The last time this company made a profit was in 2010. We have made our first profit after 14 years,” Dima said.

Dima, who took over the mantle last year said the company was on the right path of recovery. “The company is on the right trajectory and we are moving towards reclaiming our lost glory for the first time in 14 years,” said Dima.

In the last Financial Year of 2024/2025, the company made a loss of Sh700 million, which paralysed the majority of company operations.

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Sony Sugar is one of the milling companies in the country that got a lifeline after the government’s bailout following the release of Sh865 million.

Currently, the company owes farmers Sh130 million for November, October and September. Dima attributed the arrears to the shutdown in December 2024 for the maintenance of milling machines. He highlighted their commitment to clearing farmers’ arrears saying that they would clear arrears for September within a week.

“The maintenance of the plant was hanging on our head. The company had stayed for over 20 months without maintenance when I took office and this affected our production level,” Dima remarked.

He asked farmers to exercise patience as they worked on clearing their arrears and told them to support the company by bringing cane saying that they were back to their normal operations.

The company owes farmers money for November, October, and part of September. Dima said they had 3, 500 cases in court that would have cost the company over Sh2 billion by the time he reported in office. These cases have since come down to about 1,000.

Sony Chairman Jared Kopiyon admitted that the milling company has been struggling with debt in the last six years.