PROFITS made by National Flour Mills (NFM) over the past year could be described as anything but chicken feed, as chairman Nigel Romano reported in his review that the company made a 285 per cent increase in profitability in 2020.
NFM posted a profit after tax of $23.5 million, $17.4 million higher than the $6.1 million reported in 2019.
Romano added the revenue for the year was 1.3 per cent higher than 2019, as they garnered $418 million.
“This commendable increase in profitability was driven by a 5 per cent decrease in the cost of sales from $321 million to $304 million, due to the continued focus on improving operational efficiencies while strategically managing grain purchases,” Romano said.
He added that control measures in the management of inventory and improvements in processing and packaging procedures increased their profit margins from five per cent to 27 per cent.
Despite its increase in profits, NFM was still affected by covid19. Disruptions in the supply chain resulted in increases in the price of grain and caused severe logistical challenges.
“The supply chain disruptions were primarily driven by the purchasing of at above-average levels from China to meet domestic shortfalls.”
The disruptions had a particular effect on feed supplies as the main suppliers were challenged to satisfy customer needs.
The pandemic itself also affected the staff of NFM leading them to quarantine a large number of employees in accordance with pandemic protocols.
Romano expressed gratitude to the management and staff who remained committed to manufacturing and distributing NFM products to TT.
“I would also like to thank our loyal customers, our suppliers our shareholders for their continued partnership and support,: Romano said.