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F&N Accelerates Export Programme To Achieve Targeted RM500 Million Before 2020

posted 23 Jan 2018, 22:57 by iConnect@ F&N   [ updated 23 Jan 2018, 22:57 ]

Kuala Lumpur - Fraser & Neave Holdings Bhd (“F&NHB” or “the Group”) today announced a debottlenecking programme at its dairy plant in Pulau Indah that will add up to five million cases in additional annual capacity to fuel and accelerate exports from Malaysia and domestic growth.

The RM25 million smart capex initiative at F&N Dairies Manufacturing plant in Malaysia will address the much-needed capacity for exports and domestic markets. This is expected to accelerate F&NHB’s exports business towards achieving its sales target of RM500 million from Malaysia ahead of the 2020 deadline. Similarly, the Group is also looking at targeted capacity expansion in its plants in Rojana and Pakchong, Thailand.

Together with its Thai operation, F&NHB is targeting RM800 million in total exports by 2020 while firmly establishing Exports as a sustainable third pillar alongside contributions of the Malaysian and Thai business operations.

“Our transformation programme has been completely rolled out and we are currently refining the new systems and processes that we have put in place to ensure optimum efficiency and effectiveness in our operations. That together with innovation will drive and accelerate our growth.” said F&NHB Chief Executive Officer Lim Yew Hoe after the Group’s 56th Annual General Meeting (AGM)” here. Product and packaging innovations will be focused on fulfilling consumers’ health agenda and demand for affordability in current prolonged weak economic climate. This will be done through the introduction of more products with lower sugar content, the right pack sizes and prices; and clearly differentiated products including into adjacent categories.

According to Lim, F&N has set new targets to offer a healthy option in every product category that they are in by 2020.

On the strengthening of the Ringgit and Thai Baht against US Dollar, its impact on the F&N business in Malaysia and Thailand, Lim said that as a net importer, the impact should be slightly favourable even though it presents a challenge to the export team. Going forward, Lim expected the economic landscape in Malaysia and Thailand to continue to be challenging albeit with higher GDP forecasts and a strengthening currency. Nevertheless, Lim is hopeful that the new products to be launched would provide new growth engines.

“In addition, our distributor harmonisation programme should deliver cross-selling benefits as a larger number of our products reach a growing network of outlets. Our leaner operating structure will ensure agility and provide greater competitiveness in an environment where margins are always under challenge.” Lim added.

The conclusion of the AGM also saw the introduction of three new directors including two women for the first time on the Board while advancing the Group’s gender representation:

1) Datuk Mohd Anwar bin Yahya as an Independent Non-Executive Director
2) Puan Faridah binti Abdul Kadir as an Independent Non-Executive Director
3) Puan Aida binti Md Daud as a Non-Independent Non-Executive Director, nominated by Permodalan Nasional Berhad

F&NHB Chairman Tengku Syed Badarudin Jamalullail welcomed the appointment of the new directors and looked forward to their contributions especially from the women directors in offering new perspectives to the Group’s initiative to advance the health, nutrition and product innovation of its total product offering and furthering outreach with various stakeholder groups.

The Chairman and shareholders who attended the AGM thanked the outgoing directors, Datuk Seri Dr. Nik Norzrul Thani bin N. Hassan Thani, Dato’ Anwarrudin bin Ahamad Osman, Dato’ Dr. Mohd Shahar bin Sidek and Mr. Anthony Cheong Fook Seng for their valuable contributions and dedicated services given to the Company and wished them the best in future undertakings.

The AGM also approved payment of a final single tier dividend of 30.5 sen per share for the financial year 30 September 2017 (2016: final single tier dividend of 30.5 sen per share) and payable to shareholders on 9 February 2018. The entitlement date of the dividend is 29 January 2018.