The South Cairo and Giza Mills and Bakeries Company (SCFM) has accused the Egyptian Ministry of Supply of being one of the reasons for the losses it has recently incurred, as a result of its reduction in the quantities of wheat supplied to the company.
The Company’s Board of Directors announced that the company will invite the general assembly for an extraordinary meeting to discuss liquidating the company.
The company said, in a statement to the Egyptian Stock Exchange, that its losses exceeded half the value of shareholders’ equity during the last fiscal year, and therefore at the request of the head of the financial affairs sector, the general assembly will be invited to consider liquidating the company.
An official source in the company attributed the main cause of the losses to the Ministry of Supply’s decision to reduce the amount of wheat supplied to the company and distributing it to the private sector.
An official source in the Federation of Egyptian Industries denied the company’s accusations, saying the wheat quantities are determined by bakery orders.
The South Cairo and Giza Mills and Bakeries SAE, a subsidiary of the Holding Company for Food Industries, is an Egypt-based joint stock milling company engaged in the processing, trading, importing and exporting, packaging, warehousing and distributing grains and related products. Its product portfolio includes flour, pasta, bakery products and fodder.
More than 70 private sector mills are also suffering from decreased quantities of supplied wheat due to import restrictions.