MUSCAT — Salalah Mills Company is making headway in the development of a new combined mill project for the production of flour and semolina, Chairman Ahmed bin Abdullah Saeed al Rawas said in a report outlining the company’s financial performance during the first half of this year.
Plans for the expansion of the mill building to accommodate a new production line have also received board approval, he added.
Total sales by the parent company increased by 6.7 per cent during the first half of the current year. In value terms, sales generated RO 12 million in earnings during the first half of 2010, which was 1.5 per cent higher than revenues generated during the corresponding period last year. Earnings were impacted by lower selling prices in 2010 compared to 2009.
The subsidiary company, Salalah Macaroni, notched remarkable gains during the first half of the current year. The company posted a net profit of RO 396,000 this year, compared to RO 87,000 during the first half of 2009.
The Board of Directors has also approved the addition of a long cut pasta line, which is expected to be in operation by the third quarter of 2011. This new investment will increase the production lines to three, boosting the total production capacity to over 93,000 metric tonnes per year.
The parent company made a net profit of RO 1,346,251 during the first half of the current year showing a decrease of 16.6 per cent compared to the first half of last year. This was due to the increase in the cost of wheat because of the stoppage of the government subsidy and the increase in shipping freight.
The consolidated group profit for the first half of 2010 increased to RO 1,742,377, showing an increase of 2.4 per cent.
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