DESPITE the increase in net group revenue of over $20million for 2010-2011, FMF Foods Limited remains wary of the impact of the global economic gloom.
In the company's 2012 annual report, chairman Hari Punja said while the year 2011-2012 had been exceptional for the group in terms of profitability, the same could not be said for the export market.
"Increased disposable income in the hands of Fiji consumers as a consequence of reduced tax rates in the government's 2012 Budget resulted in enhanced consumption. Unfortunately, this has not been the case with our export markets especially biscuits in Australia which have witnessed a significant downturn," he said.
This, he said, was linked partially to a gloomy non-mining sector economy and largely because of the very aggressive pricing by the market leader in that segment.
"This trend is expected to continue for some more time with problems in the Eurozone and slowing down of China and India only adding to the global economic gloom," he said.
"Competition for our biscuits from Asian countries has also heightened and we are experiencing severe pricing pressure with lower margin opportunities. It is therefore felt that 2012-2013 will be far more challenging than 2011-2012."
Meanwhile, Mr Punja said in keeping with its philosophy of dovetailing its objectives with national goals, the company launched a reduced salt chicken noodles - a drive that supported the Ministry of Health's aim of reducing salt consumption and promoting a healthier Fiji.
The company recently noted a group profit after tax of over $12.931m compared to more than $11.636m for the previous year.