Untitled - Berli Jucker Public Co. Ltd.

We have managedto come up with cost controlsolutions that are beneficialto all parties concernedwithout having to compriseour product quality.BERLI JUCKER FOODS LIMITEDThe year 2006, as in 2005, proved to be mosttrying. Businesses have had to cope with notjust the global economy which has beenbuffeted by sky-rocketing fuel prices but evenmore so by challenges at home. Politicalinstability, social unrest and floods in manyprovincial areas of the country have had anegative impact on performance, while highproduction and transportation costs, and intensemarket competition have eroded profitability.Unsurprisingly, BJC Foods posted a ratherunsatisfactory sales growth in 2006. This wasdue mainly to a sharp drop in rice crackerconsumption and the introduction of newproducts and new categories during the yearwhich dominated the market, hence hamperinggrowth of the potato chip segment. Unlikepotato chips or rice crackers however, thecompany’s earnings of extruded snacks, whichaccount for one-fourth of total sales revenue,performed outstandingly.38