FMF Faces Intense Competition From Asian Firms In Aust, NZ
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.”
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