Flour group’s profits skyrocket

The Flour Mills of Fiji group made a turnaround of over $18million in the financial year ending June 30.

The group recorded a net profit of $11.6m compared to a $6.9m loss for the previous year.

Under the review period, the company recorded a much improved net revenue of $162.5m as compared to $155.9m in 2009.

“Our operating margin has improved drastically from a negative 1.9 per cent to a positive 12.32 per cent,” company chairman Hari Punja said.

“This is the direct result of stringent cost controls and a determination to price our products with a reasonable margin.

“This improvement has been across all group companies.

“However, our struggle to achieve an acceptable return from our basic flour milling business continues due to very low returns allowed under the Prices and Incomes Board’s flour pricing template.”

Operational highlights during the year include the installation of the company’s fourth biscuit line, a new creamer and expansion of snack food lines.