Mumias Presentation by Precious Blood - Valuraha Investment Club
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Transcript of Mumias Presentation by Precious Blood - Valuraha Investment Club
MUMIAS TEAM. Mercy Mukiri.
Stacy Njimu.Lilian Karanja.
Michelle Muthoni. Wavinya Kilonzo.
THE PRECIOUS BLOOD SECONDARY SCHOOL -RIRUTA
READY TO CONQUER
HAS OUR SUGAR BECOME
BITTER OR SWEETER!
HISTORY
Our company was started in 1971.It was designed and constructed by Fletcher and Stewart ,It had a rated milling of 80TCH translated to 45T of sugar per year.
First pack of sugar rolled out from the conveyor line on 1st,July 1973.The government brought forward the expansion program from 1978-79 to 1975-76.
The improved performance encouraged the government to consider expanding the factory between 170tch to 300tch.
Factory construction completed in early 1985 giving Mumias potential capacity 210000ts/yr .
The 1st year of sugar product in 1973,MSC produced 20891T from 194217T of mill cane. When was it listed in nse?
MISSIONTo consistently satisfy our consumer needs
through efficient, innovative and ethical
practices while meeting the diverse expectations
of our stakeholders
VISIONTo be a world class
producer of sugar, green energy and related
productsOUR VALUES
Quality products and services, excellence in
team driven performance, ethical business practices,
responsible corporate citizenship, safety health and sound environment
practices
BIG HAIRY AUDACIOUS GOALS Provide the source of cash income for farmers Create job opportunities Curb rural-urban migration Reduce overdependence of importations Contribute to economic growth and revenue for
government through taxation
BUSINESS AND BUSINESS MODEL
How we earn revenue Production of sugar-Domestic & Industrial Sugar Our cogeneration power plants has achieved its designed power
output. Our company gets revenue from the carbon credit it earns due to
the production of clean energy from bagasse at waste products. Production of ethanol.how many megggawats
OUR PRODUCTS
THE BOARD OF DIRECTORS
MR COUTTS OTOLO,MD MR HENRY ROTICH,NTMR FRANCIS KIPKOECH,DIRECTOR
ESTHER KOIMET,DIRECTORMR JAMES CHEGE, DIRECTOR
MR DAN AMEYO,CHAIRMAN
EDWIN MASSIMBA MISS SARAH CHUMO
NANCY KANINCHIA MR JAMES OPINDI MR NIMROD MANENGE ELIZABETH KYENGO
MANAGEMENT TEAM
MR JOSPHAT ASIRA JOHN IMBOGO PAMELA LUTTA DIANA BARASADIRECTOR OF FACTORY OPERATIONS FINANCE DIRECTOR COMMERCIAL DIRECTOR COMPANY SECRETARY
WESLEY KOECH CHARLES AWINO BONIFACE MATHANDIADR OF INFO AND COMMUNICATION DR OF HR HEAD OF AGRICULTURAL OPERATIONS
DR J MUTONGI MR COUTTS OTOLO MARGARET MAKUNGUHEAD OF AGRICULTURE MD DR OF MARKETIG AND COOPERATE AFFAIRS
Competitive advantage Supply chain management has been enhanced for overall efficiency of the
company. The company has ensured quality management systems are put in place. They’re making sure strategies are sufficient to enable management and
administration prudence. We have received government support-1BIndustry growth in the next 5-10 yearsThe company has been working on two major projects as aprojection of their future products The Joint Venture On Tana/Athi River Authority. Acquisitions.Examples
Problems facing our company
Government policies e.g. taxes. Infrastructure as roads are not well maintained thus hindering
transportation of our products. Stiff competition from other sugar producing companies e.g. Sony Sugar. Increased cost of sugar production. Cane poachers cause a major problem. Importing of duty free sugar from non-COMESA region. High rate of insolvency.
Solutions Publicity-through listing on NSE. Introduction of heavy transport machinery Cut cost in secondary services that prove costly .
SHARE PERFORMANCE
HIGHEST AVERAGE LOWEST
00.5
11.5
22.5
33.5
4
SHS
SHS
HIGH-3.95SHLOW-1.35SHAVERAGE-1.95SH
PROFITABILITY RATIOS
2014 2013 20120.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
Operating profit margin
Series 12014 2013 2012
-25.00%
-20.00%
-15.00%
-10.00%
-5.00%
0.00%
5.00%
10.00%
15.00%
Net profit margin
Net profit margin
2014 2013 20120.00%0.50%1.00%1.50%2.00%2.50%3.00%3.50%4.00%4.50%
Return on assets
Return on assets
2014
2013
2012
-25.00%-20.00%-15.00%-10.00%-5.00%0.00%5.00%
10.00%
Return on cap-ital employed
Return on capital employed
INVESTOR RATIOS
2014 2013 2012
-2
-1.5
-1
-0.5
0
0.5
1
1.5
EPS
EPS
2014 2013 201202468
1012
Book Value Per Share
Book Value Per Share
OUR RECOMMENDATION
SELL! The factory operations have remained at the
same low efficiency levels due to low continued capacity utilization
Depressed sugar prices because of increase in global and regional sugar supply of sugar.
Continued inflow of illegal cheap sugar imports. The company has not being paying dividend due
to the poor performance
PARTING SHOT
THANK YOU!
ITS ALWAYS GREENER ON OUR SIDE