$21m Profit for FMF Foods in 2015-2016
FMF Foods Ltd was able to sustain profitability and recorded an increase in group operating profit to $21.1 million this financial year, from $20.5m recorded last year.
Profit before tax was $20.3m against $19.4m in 2014-2015 while net profit was almost the same as last year at $17.6m compared with $17.5m in 2014-2015.
This was highlighted by FMF Foods Ltd chairman Hari Punja in his report to the shareholders.
"A strong focus on high value-addition, tight operations and strong control helped the company in this aspect," Mr Punja said.
He said the company also benefited from the investments made last year in AtPack for manufacturing two new packaging product lines, polypropylene bags and injection moulded plastic pails.
"While the bulk of these were predominantly consumed in-house by group companies, they give us opportunity to tap a new customer base in the industrial sector in the coming year.
"Dividend payout from the holding company has been retained at $1.8m which is the same as last year."
He said group revenue during the year was marginally lower at $213.7m against $218.4m in 2014 to 2015.
Apart from sales lost over three months immediately after Severe TC Winston, he said the year witnessed lower export of generic biscuit to Australia and the loss of business from one major contract-manufacture customer in New Zealand that was acquired by an Asian conglomerate.
"The contract-manufacture market for biscuits in Australia and New Zealand has lost its lure with intense competition from Asian manufacturers.
"In a way, this downturn has helped the company re-focus on its own brands and on Pacific Island markets where our products have tremendous goodwill and brand equity."
In the domestic market, he said competitive conditions entailed lower prices this year on their staples, being flour, rice and peas.
Thankfully, this was made affordable by a dip in global commodity prices.