FMF records reduction in group profit before tax
October 5, 2018 12:44 am
The 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.
In its annual report, Chair Hari Punja says reduction in profits resulted due to lower revenue coupled with increased depreciation from the new biscuit factory at Veisari, outside Lami.
Punja says dividend pay-out from the Company increased to $2.6 million, which is 23.8 percent higher than last year.
The report also addressed that 2017/2018 financial year was challenging due to turbulence in the local supermarkets segment which got very competitive and had an adverse impact on the volume and price of the Company’s products.
On a positive note, the new biscuit factory in Veisari started production in March and is expected to increase its output during the current financial year.
The production and sales to export markets from the factory is expected to pick up during the 2018/2019 financial year.
Meanwhile, with the upcoming Election, the company does not expect commercial or investment activity to slow down drastically.