MANUFACTURING concern National Foods says its revenue for the first quarter ending September marginally declined by 3% to US$78 million compared with the same period last year weighed down by price cuts.
Chief executive Michael Lashbrook told shareholders and analysts at an annual general meeting that volumes grew by 5% to 131 000 tonnes on last year’s figures after the company effected price cuts to stimulate demand.
“Our revenue is US$78,3 million which is a 3% lower than the same period last year. The reason for the reduction in revenue primarily is in two folds first a reduction in flour pricing in line with the raw materials pricing and secondly an issue with more maize and soya on the mix,” Lashbrook said.
Weak aggregate demand has seen most consumer facing companies cutting prices to drive volumes.-Staff Writer