PETALING JAYA: Fraser & Neave Holdings Bhd (F&N) will be capitalising on the sales of halal food to create new areas of growth for the company.
F&N said in a statement that this would be the group’s third pillar of growth after its acquisition of three food and beverage companies, namely, Sri Nona Food Industries Sdn Bhd, Sri Nona Industries Sdn Bhd and Lee Shun Hing Sauce Industries Sdn Bhd, for up to RM60mil.
“Our latest investment will serve as a platform to expand into more halal food segments and to meet the rising demand for convenience and ready-to-eat food products.
“We are confident that the new acquisitions will help us grow our halal food categories.
“It will also complement our offerings, introduce more innovative products and increase our profit margin in the long run, ” said F&N’s chief executive officer Lim Yew Hoe (pic below) in the statement.
F&N said that these investments would enable it to add an established Malaysian household food brand to its portfolio of renowned brands.
Sri Nona is best known for its flagship product, the Nona Ketupat (rice cakes) range, which is the number one ketupat brand in Malaysia, and its range of oyster sauce, which is among the top three in its category, the company said.
Meanwhile, the company said it has scaled up its e-commerce operations in 2020 to tap into the exponential growth in this channel.
F&N added that it continues to explore different order fulfilment options to strengthen its competitive edge.
The company said Food & Beverages Thailand (F&B Thailand) continued to contribute strongly despite unfavourable circumstances due to Covid-19 and the ensuing emergency decree.
Thailand had delivered over 70% of F&N’s bottom line in the financial year 2020. Although the situation in Thailand remains fluid, the company said the Thai business would continue to demonstrate resilience and agility this year that will support its strategies moving forward.
Meanwhile, the company said there are three ongoing capital expenditure projects that are expected to be completed this year. These are the RM182mil integrated warehouse in Shah Alam.
The warehouse is equipped with an Automated Storage Retrieval System (ASRS), a 20,000-sq metre regional distribution centre in Rojana to be fitted with a RM40mil ASRS, and a RM20mil drinking water line and warehouse at the Kota Kinabalu Park in Sabah.
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