The group said that despite the challenges, it is confident in its financial strength, solid cash flow position and strategic plans moving forward.
PETALING JAYA: Fraser & Neave Holdings Bhd
(F&N) will continue to focus on its current business as well as its growth efforts in agriculture through F&N AgriValley.
In a statement, the food and beverage company said the construction of its integrated dairy farm in Gemas has been progressing nicely despite the unexpected setback in the arrival of livestock.
“Delivery of the first batch of livestock from the United States which was initially planned to depart Washington port on Oct 29 has been cancelled following the receipt of a suspension letter from the Malaysia Department of Veterinary Services on Oct 24 due to HPAI H5N1 (Avian flu) outbreak concerns,” it said.
F&N said it is currently exploring options for this matter.
The group added that despite the challenges, it is confident in its financial strength, solid cash flow position and strategic plans moving forward.
“The ongoing investments align with our long term growth strategy, complement existing business operations, and position us for future success,” it said.
As for its dairy manufacturing plant in Cambodia, F&N said it is on track to bolster its presence in the country.
Moving forward, F&N will remain committed to drive growth , enhancing route-to market capabilities, and optimising operational efficiencies while remaining vigilant and agile in response to market shifts, geopolitical uncertainties and macroeconomic changes.
“Our new capital expenditures include new carbonated beverages and the drinking water line in Butterworth, a new sterilised milk filling and packing line in Pulau Indah, as well as a new chocolate manufacturing line in Rawang,” it said.
Meanwhile, F&N saw its net profit for the fourth quarter ended Sept 30, 2024 (4Q24) drop 38.21% to RM84.99mil from RM137.56mil a year ago, dragged by higher tax expenses and increased withholding taxes on dividends repatriated from its Thailand operations.
It said the higher tax expense followed the expiration of a Board of Investment incentive for F&N’s Thailand food and beverage (F&B) division in 3Q24,
This resulted in earnings per share declining to 23.2 sen in 4Q24, from 37.5 sen a year earlier.
However, revenue was 1.61% higher at RM1.26bil in 4Q24 from RM1.24bil, boosted by higher domestic sales in both its F&B Malaysia and F&B Thailand segments, despite external challenges like geopolitical tensions affecting global trade and logistics, as well as unfavourable Thai baht and ringgit translation.
F&N declared a final dividend of 33 sen per share.
It made a 50 sen payout for 4Q23, which comprised a 33 sen final dividend and a special dividend of 17 sen.
For its full year, F&N recorded a marginal 1.09% increase in net profit to RM542.77mil from RM536.9mil in the previous year on the back of 5% rise in revenue to RM5.25bil from RM5bil.
This was fuelled by higher sales from F&B Malaysia and F&B Thailand, as well as exports to Cambodia, with beverages, water and dairy products being the key performance drivers, despite geopolitical tensions and rising freight costs affecting exports.
F&B Malaysia’s revenue grew to RM2.9mil for the fourth quarter backed by strong festive demand and sustained momentum across all channels, supported by successful channel and outlet penetration and demand-generation campaigns.
F&B Thailand’s revenue was also higher at RM2.29mil driven by stronger sales to Cambodia following a successful nationwide promotion and full year impact of Bear brand sales.
