29 January 2009
MUSCAT -- Oman Flour Mills (OFM), in unaudited financial statements, has announced a net operating profit of RO 4.031 million for the group for the six months ended December 31, 2008. This compares with earnings of RO 1.797 million for the same period in the previous year. However, the net profit after tax was substantially lower at RO 0.304 million as compared to RO 3.072 million for the same period in the previous year.
Manal Mohammed al Abdwani, Chairperson of Oman Flour Mills, attributed the fall in net profit to a slump in its investments on the Muscat Securities Market (MSM). Core operations of the company have however improved, both in terms of volume and higher operational profit, she stated.
The company's sales volume increased by 10 per cent in the first half ended December 31, 2008 as compared to the same period in the previous year. The increase in volume and better margins have resulted in a higher operating profit which increased by 140 per cent from RO 1.56 million in the previous year to RO 3.74 million in the current year.
"However, due to the fall in the investment value of RO 3.39 million on the MSM, the net profit is lower. Our investments on MSM are in financially strong companies in Oman, hence we expect them to recover," the Chairperson added. The Group's net profit after tax for the six months ended December 31, 2008 is RO 303,602 as compared to RO 3,072,033 in the previous year.
Modern Poultry Farms SAOC, a subsidiary in which OFM has a shareholding of about 86 per cent, made a net profit of about RO 335,000 (compared to earnings of RO 210,000 during the previous year). "Raw material and freight prices have declined mainly due to higher grain production, and on account of the global financial crisis, but continue to remain volatile. We monitor the commodity markets daily for opportunities and procure grains at best prices to increase profitability. The Company is confident that it will be able to tide over these difficult times smoothly and maintain its profitability and market share," Al Abdwani said.
MUSCAT -- Oman Flour Mills (OFM), in unaudited financial statements, has announced a net operating profit of RO 4.031 million for the group for the six months ended December 31, 2008. This compares with earnings of RO 1.797 million for the same period in the previous year. However, the net profit after tax was substantially lower at RO 0.304 million as compared to RO 3.072 million for the same period in the previous year.
Manal Mohammed al Abdwani, Chairperson of Oman Flour Mills, attributed the fall in net profit to a slump in its investments on the Muscat Securities Market (MSM). Core operations of the company have however improved, both in terms of volume and higher operational profit, she stated.
The company's sales volume increased by 10 per cent in the first half ended December 31, 2008 as compared to the same period in the previous year. The increase in volume and better margins have resulted in a higher operating profit which increased by 140 per cent from RO 1.56 million in the previous year to RO 3.74 million in the current year.
"However, due to the fall in the investment value of RO 3.39 million on the MSM, the net profit is lower. Our investments on MSM are in financially strong companies in Oman, hence we expect them to recover," the Chairperson added. The Group's net profit after tax for the six months ended December 31, 2008 is RO 303,602 as compared to RO 3,072,033 in the previous year.
Modern Poultry Farms SAOC, a subsidiary in which OFM has a shareholding of about 86 per cent, made a net profit of about RO 335,000 (compared to earnings of RO 210,000 during the previous year). "Raw material and freight prices have declined mainly due to higher grain production, and on account of the global financial crisis, but continue to remain volatile. We monitor the commodity markets daily for opportunities and procure grains at best prices to increase profitability. The Company is confident that it will be able to tide over these difficult times smoothly and maintain its profitability and market share," Al Abdwani said.
By Staff Reporter
© Oman Daily Observer 2009
