Weather Fiji, Suva   Max 30°C, Min 23°C

Fiji Sun

SUNBIZ

FMF Faces Intense Competition From Asian Firms In Aust, NZ

FMF Faces Intense Competition From Asian Firms In Aust, NZ
September 22
11:39 2016

Now plans to refocus on its own brands and on Pacific Islands markets where their products have tremendous goodwill

 

FMF Foods Limited’s contract-manufacture market for biscuits in Australia and New Zealand has lost its lure with intense competition from Asian manufacturers.

This was highlighted by company chairman, Hari Punja, in the company’s annual report for its financial year ended June 30.

Mr Punja revealed generic biscuit exports into Australia and New Zealand had dropped in this period.

He said in New Zealand, one of their major contract-manufacture customer was acquired by an Asian conglomerate which ultimately affected exports.

But FMF Foods is looking at this downturn as an opportunity.

It now plans to refocus on its own brands and on Pacific Island markets where their products have tremendous goodwill and brand equity.

In the domestic market, Mr Punja said competitive conditions entailed lower prices this year on their stables being flour, rice and peas.

“Thankfully this was made affordable by a dip in global commodity prices,” he said.

“In keeping our focus, we were able to increase sales of our value-added products such as biscuits, noodles and chips even in the wake of new competition for biscuits.”

 

Financials

Meanwhile, the Group Revenue during the year was marginally lower at $213.7 million against $218.4 million the previous year.

Mr Punja said the company was able to sustain profitability and recorded an increase in Group Operating Profit to $21.2 million from $20.5 million the previous year.

“A strong focus on high value-addition, tight operations and strong cost control helped the company in this aspect,” he said.

“The company also benefited from the investments made the past 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.”

EDITED BY: FARZANA NISHA

Feedback:  rachnal@fijisun.com.fj

Related Articles

0 Comments

No Comments Yet!

There are no comments at the moment, do you want to add one?

Write a comment

Write a Comment

Your email address & phone number will not be published.
Required fields are marked *

you said it
"Missing Fiji already! Some of the nicest and most hospitable people I've ever met in my life! This was a part of our farewell. Totally unexpected"
Ludacris
American hip-hop artist and actor
September 2016
M T W T F S S
« Aug    
 1234
567891011
12131415161718
19202122232425
2627282930  

Latest Photo Gallery

Like Us On Facebook

Fijisun Online @Instagram