KUALA LUMPUR (Jan 15): Fraser & Neave Holdings Bhd (KL:F&N) is well capitalised to navigate rising energy and wage costs, said its chief executive officer Lim Yew Hoe.

He said this reinforces the food and beverage company’s confidence in its strong financial position, robust cash flow, and strategic plans for the future.

“Looking ahead to 2025, while we expect margins to remain tight in light of tax rebate rollbacks in Thailand and higher start-up costs for AgriValley, we are confident of making up for the extra expenditure by optimising our assets and operational efficiencies in Malaysia and Thailand,” Lim said in a statement, in conjunction with F&N's 63rd annual general meeting on Wednesday.

He believes the company will remain vigilant and responsive to market shifts, geopolitical uncertainties and macroeconomic changes.

In addition, Lim also sees the potential of artificial intelligence adoption and automation further flattening the company's chains of command, value, and supply to enhance efficiency, improve responsiveness, and foster a more collaborative work environment.

Lim said that despite the delayed arrival of its first heifers, which postponed the initial milking schedule at the F&N AgriValley dairy farm project in Gemas, the group remains confident in its ability to meet its goal of supporting national food security.

“Currently, discussions with alternative sources are in progress. Concurrently, work on Phase 1 of the farm’s infrastructure is continuing at pace, in preparation for kicking off operations when the livestock arrives,” he said.

The group is also investing in a new dairy plant in Cambodia’s Suvannaphum Special Economic Zone, along with new lines for carbonated beverages, drinking water in Butterworth, and sterilised milk filling and packing in Pulau Indah.

F&N achieved record revenue of RM5.25 billion for the financial year ended Sept 30, 2024 (FY2024), up 4.9% from FY2023, boosted by higher food and beverage sales in Malaysia and Thailand, and exports to Cambodia.

The group operating profit for FY2024 increased by 10.4% to RM709.5 million from the previous year.

Meanwhile, group profit after tax increased by 0.4% year-on-year to RM544.3 million, despite higher tax expenses.

“The group’s performance in FY2024 reaffirmed our resilience in a fast-evolving environment.

“We achieved robust profit and maintained a strong cash position despite the higher start-up costs for new ventures,” he said.

Read also:
F&N clarifies it remains well-capitalised to address delay in milk production in Gemas
F&N flags cash flow impact from delayed milk production at Gemas farm due to suspension of heifer imports
F&N anticipates minimal hit from sugary drinks’ tax hike
F&N profit falls 38% on higher taxes from Thai ops, pays 33 sen dividend

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