Positive First Two Months of Trading in New Financial Year for FMF Foods Ltd
The 46th Annual General Meeting (AGM) of FMF Foods Limited will be held on Tuesday, October 30, 2018 at 4pm at the Board Room at Fiji Commerce & Employers Federation, Suva.
FMF Foods Limited’s first two months of the current financial year have started on a positive note and the company looks forward to a successful year ahead.
It was noted in the company’s annual report which was released by the South Pacific Stock Exchange, last Friday.
Chairman of FMF Foods Limited Hari Punja in his report to the shareholders said: “The first two months of the current financial year have started on a positive note and look forward to a successful year ahead.
Meanwhile, for the financial year 2017-18, Mr Punja said: “It was a challenging one where the company had to face a very difficult market environment.
“The year witnessed a lot of turbulence in the local supermarkets segment which got very competitive and had an adverse impact on the volume and price of your company’s products. The company also experienced a reduction of sales in the feed segment.
“However, on a positive note, the new biscuit factory at Veisari started production in March 2018 and we expect to increase its output during the current financial year.
“Commodity prices rose during the beginning of the calendar year 2018, driven by both demand and supply factors and steady recovery of the global economy. “Group revenue during the year under review reduced by nine per cent to $184.9 m, compared to $202.5m in 2016-17.
“Lower revenue coupled with increased depreciation from the new biscuit factory at Veisari has resulted in reduction of Group profit before tax to $10.5m. “Dividend payout from the company was increased to $2.60m, 23.8 per cent higher than last year ($2.1 M last year), representing a total shareholder return of 62 per cent during the year, taking into account dividend payout and capital appreciation during the period. “The production and sales to export markets from your company’s new biscuit factory is expected to pick up during 2018-19.
“The Papua New Guinea foreign exchange shortage is continuing, due to which a cautious approach has been taken for exports to that country.”
Though general elections are scheduled to take place in Fiji in late 2018, Mr Punja said: “We don’t expect commercial or investment activity to slow down drastically”. Large commitments by the Government to infrastructure projects, social and structural reforms and taxation policies are likely to keep the economy buoyant. “Even though trading conditions are likely to remain tough for some time to come, I believe the foundations of the business are very strong and we expect to make further progress in 2018-19.
“The relationships with our employees and external stakeholders, including our shareholders, customers, suppliers, financiers, authorities and the community at large are critical to the sustainability of the business and I thank them for their continued support.”
About FMF Foods Limited
FMF is the parent company to its six manufacturing companies; Flour Mills, Biscuit Company of Fiji Limited, Snax Limited, Pea Industries Limited, Rice Company Fiji Limited and Atlantic Pacific Packaging Limited. Rice Company Fiji Limited and Atlantic Pacific Packaging Limited also released their annual reports last Friday.
Atlantic Pacific Packaging Limited
Atlantic Pacific Packaging Limited chairman Rohit Punja said: “I am pleased to report that year 20172018 was another year of significant progress for the company. “During the year under review, the company’s revenue was up 18.7 per cent year-on-year at $14.6m. (FY 2016-17: $12.3m.) and net profit at $1.0m versus $1.0m last year. “During the year, your Company made good inroads into export markets by bagging some new orders resulting in increased sales.
“Along with sales, operational costs also increased significantly during the year, mainly from a sharp increase in international paper prices and resin prices, further impacted by a stronger US Dollar.