FMF Remains Guarded Over Food Product Growth
Although the country is seeing a fair bit of economic momentum, FMF Foods Limited, as a food company, is guarded in its optimism.
FMF Foods Group managing director, Ram Bajekal, made these comments following the release of its financials for the six months ended December 31, 2014.
“A fair bit of the economic momentum in the country seems to be coming from increase in consumption of consumer durables, automobiles and housing,” he said.
“The increase in retail lending by banks and non-banking finance companies is a good indicator of this. This is undoubtedly a good sign for the economy.
“However, what it also means is people will be more cautious in spending money on indulgence products in the foods category.
“This is as they would keep the extra money for down payments or loan repayments.
“To that extent, we as a food company are guarded in our optimism.”
Despite this, FMF Foods reported a net profit before tax of $9.1 million for the six month period, a 15 per cent increase compared to $7.9 million the previous corresponding period.
Its sales revenue, however, increased by only one per cent to $114.3 million compared to $112.6 million the previous corresponding period.
As for the remainder of the financial year, Mr Bajekal said they are hoping that the usual trend for January to June continues.
Atlantic & Pacific Packaging
Meanwhile, Atlantic & Pacific Packaging Company Limited, a subsidiary of the FMF Foods, recorded a 244 per cent increase in its profits.
It posted $489,000 net profit before tax for the six month period compared to $142,000 the previous corresponding period.
Atlantic & Pacific Packaging Company’s revenue increased by two per cent in the period to reach $4 million compared to $3.9 million the previous years.
Mr Bajekal said for both these companies, the current year was just a continuation of things they started some years ago.
“It was a result of investments over the past few years and management practices we have adopted to continuously improve internal efficiencies and service our customers better,” he said.
“Additionally, the reduced corporate tax rate available to listed companies applies to us from this financial year (July 2014 – June 2015).
Rice Company of Fiji
The Rice Company of Fiji, also a subsidiary of FMF Foods reported $1.3 million net profit before tax, a decrease of 12 per cent compared to the previous corresponding year’s $1.5 million.
It’s revenue however increased by 14 per cent to $12.5 million compared to $10.9 million the previous corresponding period.
March 02, 2015