F&N remains focused on growth and expansion
03 Feb 2025
Fraser and Neave Holdings Bhd (F&N) remains committed to driving growth, enhancing route-to-market capabilities and optimising operational efficiencies while staying agile in response to market dynamics and geopolitical developments.
In a filing with Bursa Malaysia, the group said progress on the integrated dairy farm project in Gemas is on track, with Phase 1 infrastructure development advancing steadily in preparation for the arrival of livestock.
“Additionally, the development of the dairy manufacturing plant in Cambodia is progressing well to strengthen the Group’s presence in that market.
For the first quarter ended Dec 31, 2024 (1Q25), F&N said its revenue rose by 4.3% to RM1.39bil, mainly driven by festive sales in Malaysia and recovery in the domestic Thai economy, supported by tourist arrivals and increased sales in the Indochina market due to the availability of fresh milk supply.
Net profit in 1Q25 dipped marginally to RM169.02mil from RM170.74mil a year earlier.
Meanwhile, group operating profit for 1Q25 grew by 16.1% to RM243mil. “This growth is attributed to higher profits from F&B Malaysia and F&B Thailand, partially offset by start-up costs associated with the integrated dairy farm. Operating profits were bolstered by improved sales mix and lower input costs.”
F&N said the group’s strong performance in the first quarter was driven by festive sales in Malaysia and a recovery in the domestic Thai economy, supported by tourist arrivals and revitalised sales in the Indochina market due to the availability of fresh milk supply.
“Operating profit benefited from better sales mix and lower input costs.
“However, the expiration of the board of investment incentive for F&B Thailand has led to higher tax expenses and the incurrence of withholding taxes on dividends repatriated from Thailand.”
Looking ahead, the group said it recognises several risks, including geopolitical uncertainties, volatility in raw material prices and fluctuations in foreign currency.
“While minimal impacts are anticipated from recent regulatory changes such as minimum wage increases, service tax on logistics and the 40 sen increase in sugar taxes on sweetened beverages, the group remains vigilant.”
F&N said its mid-term strategy focuses on positioning Halal packaged foods and dairy as key growth pillars, along with ongoing efforts to create synergies within the group.
“With these initiatives, the group is confident in its ability to capitalise on emerging opportunities and navigate potential challenges ahead.”
Source: The Star
