Fatima Sugar Mills Chairman's Message
The extraordinary returns from sugarcane farming would encourage farmers to plant more sugarcane.
Once again, I begin this letter with a sense of pride about the company. As I look back on last year, in fact, the last few years, these are remarkable how well the Company has performed despite of various challenges. In FY 2018 as well, despite of prevailing unstable economic and political climate, the Company managed to improve its profitability and maintain its growth momentum. We continue to strive for growth and increasing shareholder value and I am yet again overwhelmed and highly pleased to report yet another hallmark year for company, which saw increase in sales revenue from Rs. 7,040 million in FY 2017 to Rs. 8,551 million in FY 2018. Although profit margin has been reduced due to interference of Government regarding in-put cost, that’s why over cost of sale increased from Rs. 6,212 Million to Rs. 7,806 million and net profit decline from Rs. 154 million in FY 2017 to Rs. 54 million in FY 2018 resulting in earnings per share of Rs. 0.26 compared to earnings per share of Rs. 0.73in the last year. As management, we are strongly committed towards continuously improving the operational performance of your Company. The Company has not defaulted in any repayment of debts. During the year, company also contributed approximately Rs. 188 million towards national exchequer in shape of taxes, duties, cess, levies etc.
I don’t want to forget the pivotal role of the Board in achieving the Company’s objectives. The Board has developed short, medium and long-term plans to achieve its strategic objectives. The Board regularly reviews the principle risks and mitigating factors against them. The Board’s rolein dealing with energy crisis and maintaining sustained production levels has been very effective. The relationship between the Board and its committees is very constructive and productive. The contribution and efforts of all Board members has been very vital. All the Directors provide depth of expertise and support for effective decision making. The Board also approved expansion plan, which will fill further strengthen the strategic positioning of the Company. Looking ahead, I have great confidence in the future of the Company. Our balance sheet remains strong, and we expect to gain the benefit from actions taken in 2018.
Within the businesses, we expect Fatima Sugar Mills Ltd to continue to perform well, and for announced expansions to come online and further contribute towards improvements in financial and operational performance.
Lastly, I’d like to thank our employees and our members for their support. In 2019, we will further work to enhance our profitability and align all of our resources with the needs of our business. I am confident that the entire Fatima Sugar Mills Ltd team will collectively work to make us a stronger Company.
FOR AND ON BEHALF OF BOARD OF DIRECTORS
OF FATIMA SUGAR MILLS LIMITED
Page Last Updated: Sunday, March 24, 2019