29 April 2004
The meeting was to "receive and adopt the Audit Financial Statement of the Company for the year ended December 31, 2003 together with the report of the Directors and Auditors thereon, declare dividend, re-election of Directors, fix Directors' remuneration and authorise the Directors to negotiate and determine the remuneration of the Auditors for the ensuing year".
Speaking at the meeting, the Chairman for PAF, Togbe Afede XIV said the sudden closure of VALCO and the severe shortage of aluminium circles have adversely impacted their performance in the year 2003.
He said the 97% increased in fuel prices and 30% in utility also resulted in lower market activity in the consumer good sector throughout the year. He said there was "increased price sensitivity on the part of consumers because of the reduction in their discretionary incomes".
He said the importation of" low cost stainless steel hollowware into the market and increase in the number of local aluminium hollowware manufactures competing for the same local source for raw materials" were also another problem for PAF in the year 2003.
Mr. Afede noted that the "sales turnover declined by 8% to C20.26 billion in 2003, from C21.93 billion in 2002".
He said the "profit before tax was C818 million in 2003; an increase of 18% over that of 2002 and the net profit was C560 million, 20% more than that of 2002 and the earning per share increased to C33.93.
He said the board has decided to recommend a dividend payment of C25 per share, amounting to C412.31 million, for 2003.
The Managing Director of PAF, Ms. Janet Butler also added that for the company to overcome it weakness, PAF will "strengthen their position in the aluminium hollowware market, aggressively enter regional export markets and diversify their products".
She said PAF will use technology to improve product, reduce cost and improve market access. She said PAF will also "market penetration and product differentiation, product line diversification, innovative marketing to increase visibility of PAF, increased training and merchandising support for distributors and retail outlet, costumer recruitment drives in under-served and new export market, employee training and development for maximum efficiency and renewal of organizational structures for greater effectiveness" to accomplish these strategies.
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