Price in­creases for se­lected prod­ucts mulled

The Sun (Malaysia) - - SUNBIZ - BY WAN ILAIKA MOHD ZAKARIA

KUALA LUMPUR: Fraser & Neave Hold­ings Bhd (F&N) is con­sid­er­ing price in­creases for se­lected prod­ucts, de­pend­ing on the su­gar price move­ment next year, ac­cord­ing to its CEO Lim Yew Hoe.

Speak­ing to a press con­fer­ence after an­nounc­ing its full year re­sults here yes­ter­day, Lim said de­spite the in­crease in su­gar prices this year, the group is well hedged un­til end of the year.

“We haven’t made any de­ci­sion (yet), it will de­pend on how su­gar prices move (next year). But if there is any price in­crease, it will be only on se­lec­tive prod­ucts,” he said.

For the fourth quar­ter ended Sept 30, 2016 (Q4FY16), F&N’s net profit de­clined 12.58% to RM49.59 mil­lion, from RM56.72 mil­lion in the pre­vi­ous cor­re­spond­ing quar­ter, due to soft mar­ket con­di­tions and one-off restruc­tur­ing ex­penses. Rev­enue fell 4.19% to RM976.5 mil­lion, com­pared with RM1.02 bil­lion pre­vi­ously.

For the full year, its net profit up 37.6% to RM385.37 mil­lion, from RM280.07 mil­lion a year ago, while rev­enue in­creased 1.5% to RM4.17 bil­lion, against RM4.11 bil­lion last year.

Com­ment­ing on its fi­nan­cial per­for­mance in FY17, Lim said the group ex­pects to achieve a con­sis­tent growth, with a min­i­mum tar­get of sin­gle-digit growth.

On prospects, he said the softer do­mes­tic and global eco­nomic en­vi­ron­ment, as well as the es­ca­lat­ing com­mod­ity prices in the im­me­di­ate term do pose a chal­lenge for the group to sus­tain its pace of growth.

Nev­er­the­less, Lim said the group’s var­i­ous trans­for­ma­tion ini­tia­tives in the longer term would put the group on a stronger foot­ing for sus­tain­able growth in both rev­enue and profit.

“Ac­cord­ingly, the group will re­main vig­i­lant and re­spond to chang­ing mar­ket dy­nam­ics while proac­tively fo­cus on for­mu­lat­ing ap­pro­pri­ate mea­sures to main­tain its com­pet­i­tive po­si­tion.”

“Our trans­for­ma­tion jour­ney con­tin­ues as we look to fur­ther strengthen our ca­pa­bil­i­ties and stream­line our op­er­a­tions to build the F&N of to­mor­row – a lean, sus­tain­able and ef­fi­cient cor­po­ra­tion,” he added.

F&N has pro­posed a fi­nal div­i­dend of 30.5 sen per share amount­ing to RM111.8 mil­lion. If ap­proved, the to­tal div­i­dend for FY15/FY16 would amount to 57.5 sen per share.

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