Fraser & Neave cautious due to uncertainties, Covid-19


  • Business
  • Wednesday, 04 Nov 2020

"We will continue to focus on process improvements and digitalisation, and relentlessly pursue opportunities to build a stronger and more sustainable business for the future through continued investments in capex and our brands, ” F&NHB chief executive officer Lim Yew Hoe said.

KUALA LUMPUR: Fraser & Neave Holdings Bhd (F&NHB) is in "cautious” mode amid the Covid-19 pandemic and local uncertainties as local and global situations remain fluid and uncertain for the next financial year.

"While mindful of its operating environment, the Covid-19 pandemic has provided the company an opportunity for reset and to ‘reimagine’ our business strategies to fuel growth and innovation, ” said F&NHB chief executive officer Lim Yew Hoe.

He said maintaining business as efficiently as possible while safeguarding the well-being of its employees and the community remains a top priority for the company.

"We will continue to focus on process improvements and digitalisation, and relentlessly pursue opportunities to build a stronger and more sustainable business for the future through continued investments in capex and our brands, ” he said at the virtual conference on the company’s financial results, here today.

For the upcoming year, he said the company will also slowly shift to green energy as it has installed solar photovoltaic systems in three of its plants (Shah Alam, Pulau Indah and Bentong).

"Once the project is complete, more than 20 per cent of our energy will be green, ” he said.

In regard to its financial year 2020 (FY20) performance, the company posted RM410.1 million in net profit, compared with RM410.2 million last year. Revenue meanwhile stood at RM3.99 billion, from RM4.08 billion last year.

Revenue for F&B Malaysia stood at RM495.1 million which was almost on par with the corresponding quarter last year, led by 2.4 per cent growth in export sales in addition to some recovery of domestic sales during the Recovery Movement Control Order period.

Meanwhile, higher trade stocks in the domestic Thai market carried forward from the third quarter this year, mitigated by growth in Indochina and export markets saw F&B Thailand’s revenue easing marginally to RM458.0 million.

Its operating profit surged 20.5 per cent (26.7 per cent in Thai Baht terms) to RM73.0 million.

The Thailand operations contributed 48 per cent to the company’s revenue while the remaining 52 per cent was locally contributed.

In line with the group’s earnings for the financial year ended September 30,2020, the board is recommending a final single-tier dividend of 33.0 sen per share, the same as last year for approval by shareholders at the forthcoming annual general meeting.

Upon approval, the total dividend for the year would amount to 60.0 sen per share, also the same as last year. - Bernama

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