Difficult economic conditions and the booming fuel prices last year has led to the Fosters Group recording a 55 percent decline in consolidated profit for the year ended 30th June, 2010.

In a market announcement, Foster group revealed that consolidated net profit before tax decreased from $15.54 million in 2009 to $6.99 million in 2010.

Company Director Michael Stoneman said overall group business performance for the Pacific was significantly affected by adverse trading conditions in the Fiji and Samoa markets and key events which led to this were the global financial crisis and oil price increases.

Stoneman said for Fiji, sugar production and tourism numbers continued to decline relative to prior years while the devaluation of the Fiji dollar on input prices as well as imports further dampened consumer spending.

He said sustained high oil prices and the devalued dollar applied significant pressure on costs of production as well as high maintenance costs incurred during the year to improve efficiencies.

But despite the increase in prices of Fosters products and sales mix, sales revenue increased during the current financial year by 13 percent from $65 million in 2009 to $73.5 million in 2010.

Fosters group said basic earnings per share also decreased from $1 in 2009 to 51 cents per share in 2010.


Story by: Vijay Narayan