Aug 2008 Financial News

NFM promises turnaround

Aug 15, 2008

Despite flour prices being increased three times last year, National Flour Mills (NFM) recorded a net loss of $42 million for 2007.

National Enterprise Limited (NEL) disclosed this information at its annual general meeting yesterday.

NFM is one of the companies comprising NEL.

According to its annual report for 2008, NEL’s after tax profit attributable to shareholders rose by $253.7 million or 91.1 per cent.

Telecommunications Services of T&T (TSTT) was able to turn around a loss of $121.9 in 2007 to a profit of $81.8 million in 2008.

NFM chairman, Ganesh Sahadeo, said several factors were responsible for NFM’s performance.

He said one is that NFM was in a monopolistic position before Nutrimix Ltd entered the market with its flour mill and this affected NFM’s profit.

“One reason is for the first time having competition in the main product that NFM manufactures and distributes: flour, it was really traumatic for the company,” he said.

Despite this, Sahadeo said the competition will eventually be good for the company.

“I see the competition as a blessing in disguise. It will make us aware of the market situation and to improve the way we do business. It’s a good thing for the consumers as well,” he said.

Sahadeo said NFM now has to change the way it has done business in the past.

“If the competitors can make profits I don’t see why NFM can’t make profits,” he said.

He said the changes underway at NFM will be able to turn the company around.

“We are re-organising the company to ensure that we reduce the loss tremendously this year or at best break even. We are going back to the core business of manufacture and sale of flour and feed,” he said.


Source:
The Trinidad Guardian
Friday August 15, 2008
http://www.guardian.co.tt/business2.html