Fiji Rice Company records reduction in sale
October 25, 2018 12:35 am
The Rice Company of Fiji Limited a subsidiary of FMF Foods Limited has recorded a reduction in sales for the 2017-2018 financial year.
In its annual report released on the South Pacific Stock Exchange, the company revealed sales reduced by 6% to $27.83 million from $29.56 million a year ago.
The net profit for the financial year under review was $2.54 million in comparison to $3.19 million in the previous year.
Chair, Gary Callaghan says the reduction in profit is mainly due to lower revenues and an upward revision in ‘Management and Support charges’ levied by FMF Foods Ltd.
He says the Company declared an increased dividend of 35 cents per share compared to last year’s 30 cents per share, resulting in an outflow of $2.1 million.
The report further states with the forecast for the economy to grow by 3.2% this year and by 3.4% in 2019, the company is optimistic of growth as well.
He adds they expect a revenue and profit similar to the year under review, although the overall sales volume is expected to be lower.
Meanwhile, the parent company, FMF Foods Limited recorded a reduction in group profit before tax of $10.5 million for the financial year 2017/2018.
The group also achieved a revenue reduction by nine percent to $184.9 million compared to $202.5 million in 2016/2017.
The company believes with the upcoming Election, it does not expect commercial or investment activity to slow down drastically.