FCBL revenue declines by 5% in 2022

FCBL revenue declines by 5% in 2022

“Zheychum Chogjur” takes the cake contributing Nu 109.24 million

The Food Corporation of Bhutan Limited (FCBL), in its pursuit to navigate challenges in the post-Covid-19 period, witnessed a 5% decrease in revenue in 2022 compared to the previous year. The institution, tasked with the crucial mandate of upholding the National Food Security Reserve (NFSR) while sustaining regular business operations, encountered shifts in both revenue and sales volume. Meanwhile, from the array of 86 items, the 20-kg “Zheychum Chogjur” stood out as the pinnacle performer, contributing Nu 109.24 million in revenue.

A comprehensive report released by the FCBL recently highlights that a total of 19,147.43 metric tons (MT) of essential food items found their way through various sales outlets, with the exception of farm shops. The sales effort translated into a revenue of Nu 947 million.However, this financial figure indicates a decline of 5% when juxtaposed with the preceding year’s performance.

Correspondingly, the quantity of goods sold observed a 9% decrease compared to the previous year. Unveiling the monthly revenue dynamics, December emerged as the apex month for revenue generation, contributing Nu 102.79 million. On the contrary, February marked the nadir with a revenue of Nu 64.36 million. The average monthly revenue amounted to approximately Nu 75.88 million.

The trend in quantity sold correspondingly mirrored the revenue pattern, unveiling the highest sales volume in December, tallying up to 1,911.21 MT, and the lowest in February, recording a quantity of 1,396.19 MT. Among the array of 86 items scrutinized, the 20-kg “Zheychum Chogjur” stood out as the pinnacle performer, contributingNu 109.24 million in revenue. Notably, Rice 551 New claimed the second position, generating Nu 65.45 million, followed by Sugar 30-50 kg, contributing Nu 48.79 million.

A significant observation emerged regarding the sale and value of Rice 551. An increase was noted, attributed to the resumption of operations in institutions like schools and colleges post-pandemic. This revival in demand for the item positioned Rice 551 as one of the top two food and essential commodities sold.

The distribution of revenue across different outlets unveiled Thimphu Bulk Store as the leader of the pack, accruing the highest earnings of Nu 195.96 million. It was closely trailed by Phuentsholing Bulk, which secured Nu 98.66 million, and Paro Depot, earning Nu 75.81 million.

Despite the concerted efforts to adapt to the evolving landscape in the wake of the Covid-19 pandemic, the collective revenue stemming from food and essential commodities bore witness to a 5% decline, signifying the need for continued strategic adjustments in the forthcoming years.

According to the report, as Bhutan’s economy evolves in the aftermath of the pandemic, FCBL’s ability to adapt its strategies and respond to shifting demand remains a critical factor in ensuring the nation’s food security and economic stability.

Tshering Pelden from Thimphu