Rice Com­pany Profit Low Com­pared To Last Year

The ex­pec­ta­tion for 2017 is that there will be some up­surge in pro­duc­ing coun­tries, mainly those re­cov­er­ing from 201516 El-Nino im­pacted po­si­tions

Fiji Sun - - Sunbiz - FARZANA NISHA The ex­pec­ta­tion for 2017 is that there will be some up­surge in pro­duc­ing coun­tries, mainly those re­cov­er­ing from 2015-16 El-Nino im­pacted po­si­tions Hari Punja Chair­man for Rice Com­pany of Fiji Lim­ited Feed­back: farzana.nisha@fi­jisun.com.fj

Rice Com­pany of Fiji Lim­ited net profit was marginally lower at $2.68 mil­lion against $2.98 mil­lion last year. How­ever, sales in­creased from $25.18 mil­lion in 2014-15 to $26.15 mil­lion in 2015-16. In the com­pany’s an­nual re­port re­leased on Fri­day, chair­man, Hari Punja said prod­uct mix and com­pet­i­tive mar­ket con­di­tions re­duced the profit marginally this year.

“Though its phys­i­cal fa­cil­i­ties did not bear the brunt of se­vere trop­i­cal cy­clone Win­ston as did many un­for­tu­nate Fi­jians, its sales nev­er­the­less suf­fered in the im­me­di­ate months that fol­lowed,” he said.

“In such sit­u­a­tion, I be­lieve even the mod­est 3.8 per cent growth in sales is tes­ti­mony to the con­tin­u­ing good­will your Com­pany’s prod­ucts en­joy in the mar­ket­place. “Div­i­dend dur­ing the year was main­tained at last year’s level of 25 cents per share, re­quir­ing an out­flow of $1.50 mil­lion which cor­re­sponds to last year’s amount.” Mr Punja said as of last year the Com­pany is able to store its rice stock in the con­tainer yard owned by FMF In­vest­ments Ltd, a Group Com­pany.

“In the past it was forced to store a lot of grain with ex­ter­nal stor­age fa­cil­ity providers.

“This change in stor­age fa­cil­ity is a wel­come de­vel­op­ment be­cause although the rate your Com­pany pays is no dif­fer­ent from the mar­ket rate.” He added the real ben­e­fit they get is the sig­nif­i­cantly bet­ter phys­i­cal con­trol of their stock, easy ac­cess when the rice is re­quired for pro­cess­ing and also the cer­tainty of su­pe­rior stor­age con­di­tions.

Out­look:

Mr Punja high­lighted while El Nino weather con­di­tions did im­pact some of the world’s rice pro­duc­ing coun­tries, its over­all im­pact on rice pro­duc­tion was not as se­vere as some sci­en­tists had pre­dicted it to be.

“The ex­pec­ta­tion for 2017 is that there will be some up­surge in pro­duc­ing coun­tries, mainly those re­cov­er­ing from 2015-16 El-Nino im­pacted po­si­tions,” he added. “How­ever, at a global level sup­ply­de­mand po­si­tions are not likely to change sub­stan­tially and mar­kets are there­fore ex­pected to be rea­son­ably sta­ble.”

RON­ALD KU­MAR

Rice Com­pany of Fiji Lim­ited chair­man, Hari Punja. Photo:

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