Notes  :                   English / Arabic        

Published Accounts: English / Arabic

 

Directors Report on the nine months results (unaudited) for the Period May 2007 to January 2008

 Dear Shareholders,

On behalf of the Board, I have pleasure to submit the nine months unaudited results for the period May 2007 to January 2008. 

Sales for the nine months period May 2007 to January 2008 was Rials 4,078,000 as compared to Rials 3,848,000 for the same period last year. Gross profit for the period was Rials 1,124,000 as compared to Rials 1,126,000 for the same period last year.

 Higher international oil prices increased the prices of raw material used for packing products by 40%.  Prices of raw materials for juice production have increased during this year by 30% due to lower production output internationally.

During the current year milk production was lower by 12% due to heat stress. Sales distribution expenses also increased on account of higher discount provided to super markets for increased shelf space.

 Hence the net profit for the nine months period May 2007 to January 2008 before taxation after depreciation was Rials 104,000 as compared to Rials 106,000 for the same period last year.

 As the Board of Directors previously reported that our Company’s leased land from the government expires in June 2010. The Management has already started the planning of the necessary measures for moving to a new location. Follow up continues with the relevant governmental authorities for allocating a new alternative land. Further, I would like to report that a part of the company’s leased land representing 1.375% of the total land area has been allotted to a governmental authority.

I have the greatest honor in extending my gratitude and respect to His Majesty Sultan Qaboos Bin Said, and his benevolent Government with prayers to God, the Almighty for blessing Oman and its citizens with all peace and progress under the great patronage of His Majesty Sultan Qaboos Bin Said.

Yours faithfully,

For Oman Agriculture Developement Company (SAOG)

Mohd Suleiman Al Ismaily.

Chairman.