FOLLOWING the acquisition of three food & beverage (F&B) companies, Fraser & Neave Holdings Bhd is set to establish halal food as the group’s new pillar of growth. The three companies – Sri Nona Food Industries Sdn Bhd, Sri Nona Industries Sdn Bhd and Lee Shun Hing Sauce Industries Sdn Bhd – were purchased for RM60 mil in cash.
Through Sri Nona, F&N will be able to add an established Malaysian household food brand to its portfolio of renowned brands and to realise its ambition of becoming a leading total F&B company in the ASEAN region.
During the group’s 59th annual general meeting (AGM) which was held virtually today, its CEO Lim Yew Hoe said the group is constantly exploring ways to ‘re-imagine’ its business through organic growth and business synergies to ensure a more sustainable future.
“Our latest investment will serve as a platform to expand into more halal food segments and to meet the rising demand for convenience and ready-to-eat food products,” Lim pointed out.
“With our robust R&D capabilities, we are confident that the new acquisitions will help us grow our halal food categories, complement our offerings, introduce more innovative products and increase our profit margin in the long run.”
Sri Nona is best known for its flagship product – the NONA Ketupat (rice cakes) range – which is the No. 1 ketupat brand in Malaysia, and its range of oyster sauce, which is among the top three in its category.
In view of the movement restrictions and changes in consumer buying behaviour, F&N has sharpened its route-to-market and channel strategies to get closer to its consumers by meeting their needs and expectations.
Having scaled up its e-commerce operations in 2020 to tap into the exponential growth in this channel, F&N continues to explore different order fulfilment options to strengthen its competitive edge.
“We have recently opened F&N Life’s fulfilment centre in Kuala Lumpur which provides more choices to consumers such as self-pickup options and express next day deliveries for our online shoppers,” commented Lim.
“In the future, we aim to set up more F&N Life fulfilment centres throughout Malaysia to create a seamless consumer experience.”
Meanwhile, F&N concluded its financial year ended Sept 30, 2020 with a resilient performance sustained by stronger performance in the first quarter and recovery in the fourth quarter amid robust exports.
The group recorded a revenue of RM3.99 bil for FY2020 while maintaining its net profit at RM410.1 mil despite the COVID-19 pandemic and commodity price pressures.
Lim said managing COVID-19 had enhanced the group’s state of preparedness to safeguard its business and people’s well-being in times of uncertainties.
Delving on F&N’s outlook for its FY2021, Lim said the group remains cautious of the local and global uncertainties due to COVID-19.
“Maintaining business as usual as efficiently as possible in a fluid operating environment while taking care of our people and the community, remains our top priority,” he added.
At the virtual AGM, its shareholders approved a final single-tier dividend of 33.0 sen per share (2019: 33.0 sen per share) amounting to 60.0 sen per share (2019: 60.0 sen per share) which is payable to shareholders on Feb 5. The entitlement date of the dividend is Jan 21, 2021. – Jan 19, 2021
