Sep 04 2011 |
more articles from
|
Rising raw material costs behind Oman Flour Mills drop in profits
Oman Flour Mills ' annual profits dropped 35 per cent on the back of lower margins and higher raw material prices, according to a statement released to the Muscat Securities Market (MSM).Annual profits fell from RO8.06mn in 2010 to RO5.22mn for 2011 as operating profits slipped 40 per cent from RO8.88mn to RO5.32mn and earnings from investments and other income also fell from RO782,000 to RO462,000.
In her statement to shareholders, Oman Flour Mills chairperson Manal al Abdwani said that the company is looking for government subsidy for feeds, after rising feed costs and a government directive to not increase its product prices put a strain on profit margins.
"The company, under direction from the government, has also not increased the price of its feed products. This has had a negative impact on the margins of the company. We are in talks with the government to introduce subsidy on feed and are awaiting the government's approval."
Abdwani added that the drop in operating profit "is due to lower margins on the feed mill." However, the company's subsidiaries have reported a turnaround in fortunes, with wholly owned subsidiary Aytab Investment turning Sohar Poultry Company from a 'loss-making company' into a business that generated RO345,000 in profit in the last 18 months.
Modern Poultry Farm, in which Oman Flour Mills holds a 86 per cent stake, has also made a pre-tax profit of RO306,000 compared to the previous year's RO200,000 loss.
© Muscat Daily 2011
Zawya Comment Policy
-
Zawya encourages you to add a comment to this discussion. You agree that when you add content to this discussion your comments will not:
1.1 Contain any material which is libelous or defamatory of any person, is obscene, offensive, hateful or inflammatory or causes damage to the reputation of any person or organisation.
1.2 Promote sexually explicit material, violence, discrimination based on race, sex, religion, nationality, disability, sexual orientation or age or any illegal activity.
1.3 Be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence.
1.4 Be threatening, abuse or invade another's privacy, or cause annoyance, inconvenience or needless anxiety.
1.5 Be used to impersonate any person, to misrepresent your identity or affiliation with any person, or be likely to deceive any person.
1.6 Give the impression that they represent Zawya.
1.7 Advocate, promote or assist any unlawful act such as (by way of example only) copyright infringement or computer misuse. - The content posted on www.zawya.com is created by members of the public. The views expressed are theirs and unless specifically stated are not those of Zawya. Zawya reserves the right to review all comments prior to posting and edit or delete any contribution, but Zawya is not responsible for and can not be held liable for any content posted by members of the public on www.zawya.com.
- Zawya is not responsible for the availability or content of any third party sites that are accessible through www.zawya.com. Any links to third party websites from www.zawya.com do not amount to any endorsement of that site by Zawya and any use of that site by you is at your own risk.
- By submitting your comment, you hereby give Zawya the right, but not the obligation, to post, air, edit, exhibit, telecast, webcast, re-use, publish, reproduce, use, license, print, distribute or otherwise use your comments worldwide, in perpetuity.
Copyright © 2012 Zawya Ltd. All rights reserved. |
provided by www.zawya.com |
Post Your Comment