PETALING JAYA: Fraser & Neave Holdings Bhd (F&N) is solidifying its position as a key player in the region with strategic investments aimed at driving long-term growth and resilience.
CEO Lim Yew Hoe said the group’s focus on expanding its operational capabilities in Malaysia and Cambodia underscores its commitment to delivering value to shareholders while navigating a challenging economic landscape.
“In Malaysia, F&N has initiated several projects to bolster its production capacity and meet growing market demand.
“Among these are new manufacturing lines for carbonated beverages and drinking water in Butterworth, a sterilised milk filling and packing line in Pulau Indah, and a state-of-the-art chocolate manufacturing line in Rawang.
“These upgrades are expected to not only enhance product offerings but also improve operational efficiency,” he said in the annual report filed in Bursa Malaysia.
Lim said the development of a dairy manufacturing plant in Cambodia is progressing steadily, marking a significant step in F&N’s expansion into the Indochina market.
“Once operational, the facility will enable the group to tap into Cambodia’s growing demand for dairy products, further diversifying its revenue streams.
“The investments align with F&N’s long-term strategy of capturing growth opportunities in Southeast Asia while addressing evolving consumer needs,“ he added.
Lim highlighted that these initiatives are part of a broader effort to optimise assets and strengthen the group’s competitive positioning across key markets.
Despite challenges such as higher startup costs for the dairy farm and the removal of tax rebates in Thailand, he noted that F&N remains optimistic.
“The group’s ability to adapt through operational efficiencies, automation and digitalisation initiatives positions it well to mitigate rising costs and sustain profitability,“ he said.
He noted that its growth strategy is the company’s adoption of AI and automation technologies under the ‘Future Now’ initiative.
“This digital transformation aims to streamline operations across the command chain, supply chain, and value chain, fostering agility in response to market changes,“ he added.
F&N sustained growth in FY24 with revenue increasing by 4.9% to RM5.25 billion, driven by strong domestic sales in Malaysia and Thailand, along with exports to Cambodia.
Operating profit rose 10.4% to RM709.5 million, while profit before tax improved by 11.6%, despite higher restructuring and startup costs.
F&N food and beverages division operating in Malaysia (F&B Malaysia) reported a 3.5% rise in revenue to RM2.95 billion, buoyed by successful marketing campaigns and festive demand.
