Oman Flour Mills subsidiary to invest in soya crushing project

2017-08-28 04:03:18

(MENAFN- Muscat Daily) Muscat- The board of Atyab Investment LLC, a wholly-owned subsidiary of Oman Flour Mills Company has approved a 40 per cent shareholding in a new soya crushing project to be set up along with other investors.

The approvals for the formation of the company from relevant authorities have yet to be obtained, Oman Flour Mills said in a disclosure filed with the Muscat Securities Market (MSM) on Sunday.

'The investment in this project would be RO5.2mn and the project is likely to be completed by 2020. As per the feasibility study conducted by an independent consultant, the project IRR (internal rate of return) is 15 per cent and the payback period is six years', Oman Flour Mills noted.

Oman Flour Mills' group net profit rose 15 per cent to RO14.7mn for the year ended June 30, 2017 compared to RO12.77mn in the previous year. The increase in profit was due to improved performance of the parent and subsidiary companies. Parent company's net profit grew to RO12.74mn compared to RO10.91mn in the previous year. The increase in profit was due to higher sales and better margins helped by lower cost of material, Oman Flour Mills said in directors report submitted to the MSM on Sunday.

The board of directors of Oman Flour Mills in its meeting on Wednesday recommended to distribute a cash dividend of 50 per cent of the paid up capital to the shareholders. The company's annual and extraordinary general meetings are scheduled to be held on September 27.

Oman Flour Mills is setting up a new 500MT flour mill in Sohar, adjacent to the silos proposed to be constructed by the government as per their strategic food reserve programme. The company said the new mill is expected to be ready by mid of 2018.

Oman Flour Mills said the expansion at its subsidiary Modern Poultry Farm (MPF) is on going and production of eggs from some new houses commenced from April last year. At full expansion, which is expected to be completed by 2018, the increase in capacity will be about 50 per cent of the pre-expansion production.

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