Friday, May 16, 2008

NFM records $42.1m loss

Published: Friday May 16, 2008

National Flour Mills has made a $42.1 million loss for the year 2007.

In the company's audited financial results for the year, company chairman Ganesh Sahadeo confirmed that the State-owned company's management team was now looking at methods by which it could "halt the decline and ensure the company returned to profitability in the shortest possible time frame".

While the company recorded an improvement from the previous year's loss of $53.7 million, Sahadeo said the company continued to face challenges and NFM's profitability was still suffering.

He said the high prices of raw materials (such as grain) plagued the company this year, as even with new product price increases the company could not keep up with the sky-rocketing costs of grain.

He said the closure of the company's Edible Oil Complex and the old flour mill also impacted negatively on NFM's earnings.

Sahadeo also said this year, "NFM was severely challenged in facing the (new) level of competition in both the flour and animal feed segments of the market."

He also said NFM is currently undergoing a systems change which will make financial reporting less challenging for the company throughout the new financial year.

Source: Trinidad Express Newspapers

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