UNIKAI Foods (UNIKAI) will further rationalise expenses and reduce operational costs as the company’s accumulated losses reached 48.07 percent of capital ratio.
In a statement to Dubai Financial Market (DFM) CEO Neeraj Vohra said the cause of the losses of AED 15.6 million ($4.2 million) was a general slowdown in 2018, as well as competitive market conditions, IFRS-9 regulations on credit losses and other legislations introduced in the same year.
Vohra said the year 2020 had then also been unprecedented in terms of market conditions.
“The management acted swiftly to control its expenses in line with the decline in revenue because of COVID-19,” he said.
“The management has been focusing to reduce its operating expenses in terms of fleet, outsource manpower, renegotiating the costs of key materials and services, availing Government aids etc.
“This way the company was able to sustain profits of AED 3.57 million for the year ended 31st Dec 2020. The management continues to focus to strive for profitable volume growth, further rationalisation of expenses to improve the efficiency and reduce the operational cost in order to turn the accumulated losses into positive retained earnings.”
It emerged yesterday that UNIKAI was taking steps to eliminate sweetened drinks from its product range and focus on fruit-based drinks.
(Writing by Imogen Lillywhite; editing by Seban Scaria)
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