The capex has been earmarked for new production lines and add-ons to expand the capacity and capability of existing lines to facilitate the group’s extension into new offerings and packaging formats.
These initiatives shall complement F&N’s continuous drive to improve its efficiency, expand its capacity and capability, while leveraging the latest technology to meet consumers’ evolving demand.
Speaking after the group’s annual general meeting, F&N CEO Lim Yew Hoe said consumers’ lifestyle aspiration has driven the growing trend of healthy consumption, spurring the group to sharpen its focus on product and packaging innovations in order to provide enjoyable, convenient and nutritious products.
“Today’s consumers care about the sugar content in their beverages, but they are also keen to try out new and unique offerings that are packed with goodness and delicious taste.
“The opportunities are limitless and we are confident that our investments will enable us to accelerate the expansion into new categories and a more extensive portfolio of healthier options this year,” he said.
F&N has invested significant effort in its ongoing development of healthier products long before the government’s announcement on sugar sweetened beverage tax by reducing sugar content of its products without compromising on taste.
The group has also increased the range of products that meet the Healthier Choice Logo criteria by Malaysia’s Ministry of Health.
F&N has reduced the sugar index of its beverage portfolio by 34% since 2004, from 9.5g per 100ml in 2004 to 6.3g per 100ml last year.
Moving into 2019, Lim said the group will prioritise on initiatives to capture revenue synergies by focusing on its three growth drivers, namely, innovation, excellence in execution and cost competitiveness to generate profitable and sustainable growth.
F&N concluded FY18 with a marginally higher revenue at RM4.11bil compared to RM4.10bil in the previous year, underpinned by effective promotions and higher export sales which mitigated the impact from portfolio rationalisation.
The group’s net profit for FY18 rose 19.1% to RM385.1mil compared to the previous year.
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