Stronger ringgit a boon for F&N

Fraser & Neave Holdings Bhd CEO Lim Yew Hoe (left) and chief financial officer Tan Hock Beng at a media briefing after its annual general meeting.

KUALA LUMPUR: Fraser & Neave Holdings Bhd (F&N) expects a lower production cost this year on the back of lower sugar prices and a stronger ringgit.

“We are net importers especially for milk powders, as such a stronger ringgit is positive for us,” said F&N chief financial officer Tan Hock Beng to reporters after its AGM on Wednesday.

The ringgit has been among top performing currencies in the region. The currency continued to strengthen against the US dollar, trading at RM3.92 – the highest in 18 months.

It had depreciated by about 35% against the US dollar from January 2014 to September 2015.

F&N also announced an additional five millions capacities to its dairy plant in Pulau Indah. Currently, it is producing 16 million cases of canned milk products in Pulau Indah.

“The expansion in capacity would add about RM300mil to our topline,” chief executive officer Lim Yew Hoe said. 

He said that F&N is targeting to introduce new products in the coming months to tap into the growing demand for less sugar and healthier products.

According to F&N annual report, the group has reduced 24% of sugar content across its products compared to in 2017.

Its best selling product is 100 plus drinks.