24 March, 2018, 12:00 am
PACIFIC Green Industries (Fiji) Ltd chairman Samuel Ram says after experiencing temporary setbacks because of delayed building projects in 2017, the company is delighted to report encouraging gross margins and profit for 2017.
Mr Ram made the comment in his Chairman’s Report included in the 2017 Annual Report which was released on Thursday through a market announcement made through the South Pacific Stock Exchange.
“Our gross profit margin was 37.4 per cent, a 4.9 per cent over the previous year, with a gross profit of $1.39 million, up from $1.27m in 2016,” Mr Ram said.
He said the company made a net profit after tax of $387,928 compared with $321,766 achieved in 2016.
The company also improved its net asset position from $3.7m (2016) to $$4.0m as at the end of December 2017.
Mr Ram said furniture manufacturing was becoming difficult and challenging with rising costs of labour and materials, and a shortage of skilled labour.
“Since late 2017 we’ve taken a significant step by establishing a transformation plan with an increased focus on operational efficiencies to achieve economies of scale to reduce costs and drive our core competitiveness further.
“We are delighted that we’ve made significant progress on few fronts including further standardisation and automation of our production process,” he said.
The chairman said the furniture making industry remained extremely competitive with a large number of imported furniture entering the market at lower costs.
“In order for us to stay competitive in the market, we will further increase our operational efficiencies through process improvements, skill-based training, and through a series of cost reduction initiatives,” Mr Ram said.