Buying patterns affect business

FOOD manufacturers — FMF Foods Ltd — state that the changes in consumer behavior, buying patterns, increase in commodity prices, challenges in supply chain because of logistics delays, working environment and maintaining protocols arising due to COVID-19 pandemic pose some challenges for the businesses.

In its financial statements, the company also highlighted while the group’s staple food products such as flour and rice were expected to be only marginally affected by lower sales because of present socio-economic conditions, it expected sales of impulse-purchase products such as biscuits, chips and noodles to be more heavily impacted.

It also said the group had been focusing on ensuring the safety of its employees and other stakeholders as well as ensuring the availability of its products, most of which were daily essentials, across the country, adding that based on current estimates, the group does not expect any material impact on the carrying amount of these assets and liabilities.

According to the group its profit for the year from continuing operations attributable to the members of the company for the year was $9.2 million compared with $12.4m for 2020.

The company directors also mentioned that the continued volatility in the price and availability of raw materials on account of economic conditions, market demand, production levels and logistic challenges could affect the operational and financial performance of the company.

“The board reviews the long term impact of the pandemic and takes all steps necessary for the group to adapt itself to emerging changes and the new normal,” it said.