F&NHB announces new programme to accelerate exports from Malaysia
KUALA LUMPUR: Fraser & Neave Holdings Bhd (F&NHB) 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.
At the same time, the company also announced the appointment of three new directors, including two women directors.
In a press statement, F&NHB announced that the conclusion of its Annual General Meeting (AGM) saw the introduction of three new directors including two women on the board, advancing the group’s gender representation.
These new directors are Datuk Mohd Anwar Yahya as an Independent non- executive director, Faridah Abdul Kadir as an independent non-executive director, and Aida Mohd Daud as a non-independent non-executive director,nominatedbyPermodalan Nasional Bhd.
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.
Meanwhile, F&NHB said the RM25 million smart capital expenditure (capex) initiative at F&N Dairies Manufacturing plant in Malaysia will address the muchneeded 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.
“Ourtransformationprogramme 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 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 chairman and shareholders who attended the AGM thanked the outgoing directors, Datuk Seri Dr Nik Norzrul Thani N Hassan Thani, Datuk Anwarrudin Ahamad Osman, Datuk Dr Mohd Shahar Sidek and Anthony Cheong Fook Seng for their contributions and dedicated services given to the company.
The AGM also approved payment of a final single tier dividend of 30.5 sen per share for the financial year September 30, 2017 (2016: final single tier dividend of 30.5 sen per share) and payable to shareholders on February 9, 2018. The entitlement date of the dividend is January 29, 2018.