Aug 2010 Financial News

NFM ‘roughed up’ at AGM

Aug 12, 2010

Board and management of National Flour Mills (NFM) yesterday came under heavy criticism from its shareholders at its 2010 Annual General Meeting, despite a $17 million profit experienced by the company in 2009 compared to a $18.9 million loss recorded in 2008.

Shareholders took the opportunity at the meeting held at the Cascadia Hotel, Cascade to voice their concerns including a $21 million shortfall in inventory and the company’s inefficiencies which led to a period of losses and near bankruptcy.

NFM chairman Ganesh Sahadeo sought to alleviate fears by assuring inefficiencies are being dealt with.

“We did a tremendous amount of work to get the company where it is today.

When I came on board this company was on the brink of bankruptcy and it is sad to see some shareholders do not appreciate the tremendous amount of work that has gone on to turn around the company. NFM is not a small company, it is a big one and to turn it around was difficult. I think we have done a tremendous job to turn it around from where we were to where it is today,” he said.

In her presentation, acting chief executive officer Gillian Pollidore said several factors accounted for NFM’s return to profitability which included cost management and greater efficiency through restructuring, management of overhead costs and inventory and the re-implementation of a management information system. She added their quality products and improved customer service helped secure customers. She said going forward, the company intends to continue to provide quality goods and services and to ensure continuous improvement in an effort to expand its customer base. NFM will also seek to rebuild its brand image.

Pollidore said in the coming years, NFM will focus on upgrading and improving infrastructure to improve deficiencies.

“While we believe we are at a turning point, we must be mindful of the challenges which lie ahead,” she said explaining the forecast of industry analyst of a severe slump in grain markets particularly in wheat.

“While we have no indication where prices will go, we intend to continue managing the grain procurement process we have by utilising strategies to limit the upside risk,” she said. Other challenges foreseen by NFM include slow recovery of the local and global economy and competition from local, regional and imported flour.

Pollidore assured however that NFM has been dealing with this issue for the past five years and they are well poised to face the challenge head on.


Source:
Newsday
Thursday August 12, 2010

http://www.newsday.co.tt/business/0,125620.html