Fenaka Corporation Limited has announced a significant reduction in its expenditures over the past eight months, reporting a decrease of 60% compared to the same period last year. The corporation has provided details regarding the initiatives implemented to achieve these cost reductions.
When the current administration assumed office, Fenaka was identified as one of the companies burdened with substantial debt, totaling USD 278.9 million. According to Fenaka’s statistics, the corporation's expenses from January to August 2023 amounted to USD 9.8 million. In contrast, this figure has decreased to USD 3.9 million during the same period in 2024, marking a noteworthy reduction of 60%.
Fenaka disclosed that the majority of these savings can be attributed to lowered logistics costs. As such, while the corporation incurred USD 4.8 million within the first eight months of last year, it only spent USD 758,754 during the same period this year. This is a remarkable decrease of 84% on transportation costs. Managing Director of Fenaka Muaz Mohamed Rasheed stated that USD 5.2 million is spent on average for logistic expenses, primarily due to renting separate vehicles for product distribution and high costs per trip.
Additionally, Fenaka has reduced it's Corporate Social Responsibility (CSR) expenses. Managing Director Muaz stated that Fenaka had previously spent on CSR despite its financial situation. Therefore, it had halted spending on CSR, with the exception of a donation of USD 6,485 to the Palestine fund. Last year, Fenaka incurred USD 603,112 as CSR expenditures.
Meanwhile, the statistics indicate the Fenaka spent USD 51,815 for international trips undertaken by Fenaka's management for work related purposes in 2023. This year, it spent USD 15,888 for this purpose, marking a significant decrease of 69%.
Additionally, the Fenaka has temporarily suspended spending on staff welfare after observing that a portion of the budget was disproportionately benefiting a specific group of employees. In 2023, Fenaka spent over USD 64,850 on staff welfare. The company has also reduced allowances, management trips, petty cash for travel, event expenses, printing and stationery costs, as well as marketing expenses.