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FMF Foods Limited Chair, Ram Bajekal says trading conditions are likely to be challenging throughout 2023 as the world continues to come through the post effects of the COVID-19 pandemic, the Russia-Ukraine war and consequent economic aftershocks including high inflation.

However, he says FMF is well prepared to meet these challenges through a combination of effective product pricing and the delivery of cost savings.

In the company’s annual report for 2022, Bajekal says the Fijian economy is on its way to recovery as a rebound in tourism and other key economic sectors continue to positively influence consumption and investment-related activities.

He adds the country’s financial sector which experienced near all-time low-interest rates is also showing growth with lending to the private sector showing an upward trend.

Bajekal says the labour market is seeing a sharp increase in number of jobs advertised as a consequence of both, the economic recovery as well as a spurt in Fijians taking up jobs in Australia and New Zealand under the Pacific Labour Mobility Schemes.

He adds the Company’s operating performance improved in the financial year under review, recording a sales growth of 15% to $250.4m from $217.3m last year.

Bajekal says the increase in volumes were achieved mainly in wheat sales, flour, rice, peas, snacks, and packaging materials, while a marginal drop was noted in biscuit sales.

He adds profit also increased by seven percent to $9.9m from $9.2m last year.

The Chair adds this represented a good outcome despite economic recovery being impacted by the third wave of the pandemic in the earlier part of the financial year and later the Russian invasion of Ukraine.