Commodity

Mamee Cost Breakdown

If we compare cost breakdown between Mamee and CI Holdings, i think CI Holdings will be more effected by rising commodity as sugar does not really a significant cost factor to Mamee. Cooking oil also at manageable level but flour price is quite a concern to me as flour contribute 11% in their cost breakdown. However, wheat price is still lower than 2008 price while sugar is trading at 10 years high. As Mamee does not use subsidised flour, i think they are more well prepared in cost controlling. Will avoid CI Holdings for time being as i want to wait for next quarter. The cost impact of sugar should be reflected in 2 quarter result, will see whether they are as good as F&N at cost management. Maybe i should start accumulate mamee first?

Mamee cost breakdown