Kuala Lumpur: Fraser and Neave Holdings Bhd (KL:FandN) is well-capitalised to navigate rising energy and wage costs, said chief executive officer Lim Yew Hoe. He stated that this reinforces the food and beverage company's confidence in its strong financial position, robust cash flow, and strategic plans for the future. Lim emphasized the company's preparedness in managing fiscal challenges while maintaining its growth trajectory.
According to BERNAMA News Agency, Lim addressed the outlook for 2025, noting that while margins are expected to remain tight due to tax rebate rollbacks in Thailand and higher start-up costs for AgriValley, the company is optimistic about compensating for these expenses through asset optimization and operational efficiencies in Malaysia and Thailand. He underscored the company's commitment to staying alert and responsive to market dynamics, geopolitical uncertainties, and macroeconomic shifts.
Lim also highlighted the potential benefits of adopting artificial intelligence and automation to streamline the company's command, value, and supply chains. This technological integration is expected to enhance efficiency, responsiveness, and foster a collaborative work environment. Despite the delayed arrival of its first heifers, which postponed the initial milking schedule at the FandN AgriValley dairy farm project in Gemas, Lim expressed confidence in the group's ability to contribute to national food security.
In terms of expansion, the group is investing in a new dairy plant in Cambodia's Suvannaphum Special Economic Zone, alongside new lines for carbonated beverages, drinking water in Butterworth, and sterilised milk filling and packing in Pulau Indah. FandN reported a record full-year revenue of RM5.25 billion, an increase of 4.9 per cent from FY2023, driven by higher domestic sales in Malaysia and Thailand, as well as exports to Cambodia.
The group's operating profit for FY2024 rose by 10.4 per cent to RM709.5 million from the previous year. Meanwhile, the profit after tax increased by 0.4 per cent year-on-year to RM544.3 million, despite incurring higher tax expenses. Lim concluded by reaffirming the group's resilience and robust financial performance in an ever-evolving environment, highlighting the achievement of strong profits and a solid cash position despite higher start-up costs for new ventures.