F&N seeks more synergies

  • Business
  • Thursday, 09 May 2013

KUALA LUMPUR: Fraser & Neave Holdings Bhd (F&N) will continue to explore more synergistic opportunities with its new parent company, Thai-based TCC Assets Ltd, according to CEO Datuk Ng Jui Sia.

“We already have a relation with TCC group of companies. We have been buying aluminium cans packagings from Berli Jucker Public Co Ltd. Some of the synergies are already there. We will be exploring more synergistic opportunities such as procurement,” Ng said at a briefing yesterday.

He said F&N would be importing Oishi beverage products manufactured by Oishi Group Public Co Ltd, also from the TCC group of companies.

“We will be importing Oishi green tea beverages into Malaysia in June. It will not be a full range (of products) but enough representation for the market.

“We will be purely a distributor in the short term. In the long term, we are looking at producing Oishi beverages for the local market,” Ng said.

F&N reported a net profit of RM54.6mil on revenue of RM882mil for the second quarter ended March 31. For the first six months, the beverage company registered a net profit of RM111.7mil and revenue of RM1.75bil. It has declared a single-tier dividend of 20 sen per share. The dividend amounting to RM73mil will be paid on Aug 1.

Ng said its dairies operation in Thailand, which was affected for six months by the severe floods, had resumed full production in the third quarter last year.

He said the company had so far received 1.06 billion bahts from insurance claims.

Locally, Ng said F&N 100Plus was expected to maintain its leadership position. He said the group was strengthening its Seasons brand of Asian drinks this year and expected better performance from this section.

He expects the beverage landscape to remain competitive with increased soft drink offerings competing for consumers’ wallets. Ng said the local ready-to-drink market was still relatively small compared with other South-East Asian countries.

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