Pacific Green Industries (Fiji) Ltd (PGI), a manufacturer specializing in palmwood furniture, has reported challenging financial results for the first half of this year. The company posted a net loss of $120,603, a significant reversal from a profit of $145,548 in the same period the previous year. This downturn is primarily due to declining sales, the impacts of mass migration, and rising costs, which have collectively weakened both sales and profitability.
The chairman of PGI, Ravin Chandra, explained that the company’s export and online marketing efforts have been “compromised,” leading to a diluted customer base. This has been exacerbated by ongoing global instability, which has slowed demand and increased costs, particularly in labor expenses. Chandra pointed out that skill levels and productivity have dropped, putting further pressure on the company’s margins.
Despite these difficulties, PGI has taken steps to address the challenges and prepare for future growth. These include initiatives aimed at improving labor productivity, process enhancement, cost management, strategic workforce planning, repositioning in export markets, recovering digital marketing efforts, and enhancing operational resilience. Chandra expressed confidence that these measures will stabilize the company’s short-term performance and position it for sustainable growth once market conditions improve.
The company also reported improvements in cash flow from operations compared to the previous year, which is a positive sign amid the current challenging circumstances. Although PGI experienced a net loss, the company continues to invest in strategic initiatives designed to secure long-term growth prospects.
PGI’s strong balance sheet remains an asset, with total assets totaling $8.31 million and net assets at $6.69 million, offering a stable foundation for future expansion. The company emphasizes the importance of financial stability through prudent management of liabilities and maintaining a significant level of cash assets.
Chandra additionally urged government and institutional stakeholders to support locally produced furniture over imported alternatives. He underlined that prioritizing local production could create jobs, strengthen communities, and contribute to the national economy, aligning with PGI’s commitment to sustainability and local investment.
The situation underscores the broader challenges faced by companies operating in volatile economic environments and the strategic moves required to ensure resilience and potential growth.
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