Fraser & Neave Holdings Bhd Annual Report 2020

079 ANNUAL REPORT 2020 03 md&a ➧  Continue to develop healthier products and more packaging formats to meet the evolving needs of our consumers. ➧  Reinforce our environmental stewardship with sustainable packaging and carbon reduction initiatives in our operation. ➧  Develop competency in emerging technologies and smart automation among our talents to accelerate a new, data- driven way of working. ➧  Focus on process improvements and digitalisation to capture more values along the value chain. ➧  Complete on-going capex projects and enhance insourcing capabilities. ➧  Cost reduction initiatives across all facets of operations, including sourcing of materials, marketing, logistics and distribution, and manufacturing. ➧  Maintain business as usual as efficiently as possible while safeguarding the well-being of our employees and the community. ➧  Strengthening our reach via strategic collaborations and effective route-to-market strategies. Deepen our foothold in Export markets. ➧  Disciplined portfolio management across different channels to accelerate brands growth in domestic markets and abroad.   C R E A T I N G V A L U E S & C A R I N G F O R S T A K E H O L D E R S ➧ Successfully launched 10 new products including 5 healthier options. Also started our foray into adjacent ready-to-eat category with milk candy tablets under the brand Magnolia Milkies in Thailand. ➧ Embarked on e-Commerce journey with establishment of F&N Life in Malaysia. Scaled up our online operations in March during the MCO. F&N Life now offers no less than 250 product types while achieving more than 20,000 user downloads in less than a year. ➧ Offered packaging options that deliver even more value in the current climate of cost and environmentally-conscious consumers. For the export market, we introduced one metric tonne packaging for sweetened condensed milk catering specifically to F&B manufacturers. We also introduced an eco-friendly packaging option for F&N ICE MOUNTAIN Drinking Water. ➧ Maintained full Year profit after tax of RM410 million from successful cost management across the organisation despite higher commodity cost. ➧ Improved operational and cost efficiencies through various initiatives to reduce consumption of resources, improve productivity and yield while enhancing product quality. ➧ Completed three significant capex projects during the year that expanded our capabilities despite the inevitable delays caused by movement restrictions. ➧ Protected and grew our market leadership in key categories despite general market decline due to COVID-19. Increased brand presence via online and offline platforms by adopting innovative approaches to boost customer experience and e-commerce engagement. ➧ Maintained adequate supply of our core products in the market during the MCO in Malaysia and the emergency decree in Thailand. Expanded our direct distribution network in Malaysia and increased our distribution network coverage by 2,000 new outlets in Thailand. ➧ Enforced strict hygiene and standard operating procedures (SOPs) in our workplaces as well as adopted flexible work arrangements and videoconferencing to safeguard employees’ well-being. 2021 PRIORITIES 2020 HIGHLIGHTS