F&N warns of further price rises

F&N chief executive officer Lim Yew Hoe

KUALA LUMPUR: Fraser & Neave Holdings Bhd (F&N) could raise the prices of its products as the commodities prices continue to rise and spike in global freight rates.

"I think prices will definitely have to be increased, but when and by how much percentage we will increase it depends on the commodity price trend. One thing we can promise with certainty is that the price increase will always lag behind the cost increase,” said chief executive officer Lim Yew Hoe.

Lim pointed out that the surge in global commodity prices is unprecedented and that the group is working to mitigate the risk by cutting its operating costs.

Towards this end, he said F&N has started to install solar panels at its manufacturing plant as part of its cost efficiency efforts.

“The solar farm not only contributes to energy efficiency, but it will also reduce carbon emissions moving forward.

“We see that having a solar farm is an inflation-proof measure for the group,” he told reporters during the group’s financial results briefing for the first half ended March 31, 2022, on Thursdays.

Over the next two years, Lim said F&N has allocated RM30mil for its renewable energy programme that includes 10MW of solar energy capacity.

“We estimated annual electricity cost avoidance of RM3mil - RM4mil,” he added.