F&N Expects Continued Revenue Growth
KUALA LUMPUR, Nov 7 – Fraser & Neave Holdings Bhd (F&N) expects continued revenue growth for the financial year 2015 and surpass its yearly average, says non-independent and non-executive director, Datuk Ng Jui Sia. He said the key strategic thrusts would continue to be 100 Plus isotonic drinks which were well-positioned within healthier life-style portfolio, soya products and the repositioning of dairy products.
“The company will continue to excite customers, make the brands more relevant by continuing to value add our products,” he said at the media briefing on the company’s full-year results ended Sept 30, 2014 here Friday. Ng said the Malaysian business contributed about 80 per cent to the group’s business with at least six brands ranked number one in various categories.
He said with the group’s expansion in Myanmar and Vietnam, Malaysia was set to play a bigger role as centre of excellence and learning, where mega facilities were placed to boost regional exports. Currently, in the Asean food and beverages markets, the group was second to a global brand and continued to bridge and narrow the gap every year, said Ng. “In the next five years we will bridge the gap even much closer.
“To become Number One would require us to do a major acquisition and we are open to any negotiations pertaining that,” he said. On capital expenditure, he said, the group would be spending more to upgrade and maintain its mega facilities, especially the soft drinks line, to produce new brands to cater to domestic market. On the implementation of the Goods and Services Tax in April next year, Ng said since it was government budgetary policy the company would comply with it.
He said as manufacturer and the start of value chain the group has no control over end-consumer price as wholesalers and retailers were involved. “To survive and absorb the tax, there must be some compensatory factors and how much to pass on depends on competitive elements,” he said. For the financial year ended Sept 30, 2014, F&N’s pre-tax profit rose by 2.5 per cent to RM315.5 million from RM307.8 million last year.
Its revenue grew by 8.9 per cent to RM3.82 billion from RM3.51 billion previously. The group said there was an insurance claim of RM49.3 million recognised in the last financial year, and excluding this claim, its pre-tax profit had soared from RM258.4 million to RM315.5 million. F&N said the solid performance and higher contributions from all its business units, driven by Dairies Thailand, which registered a 15.6 per cent growth in revenue, contributed to the total increase in the group’s revenue.
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