KUALA LUMPUR: Despite the anticipated tough market conditions this year due to rising commodity prices, Fraser & Neave Holdings Bhd (F&N) remains resilient amid the short-term global challenges.

       According to its chief executive officer Lim Yew Hoe, the company is on track to achieve its long-term growth goals by consistent execution of its strategies.

       “Regardless of the short-term outlook, we remain confident on the long-term potential of our markets.

       “The group has weathered many storms in our 139-year history, and key to our longevity has been the ability to embrace short-term impact for long-term sustainability,” he said during F&N’s 60th AGM recently.

       For this year, Lim noted that the group would prioritise improving and managing its costs, particularly its cost of goods sold.

       “This will include reviewing trade expenditure, strategic capital expenditure investment to extract efficiency, and smart procurement to obtain better value,” he said.

       Lim explained further that the group would leverage its strong manufacturing capability, diversify its range of products and refine its product mix and pricing to maximise profitability.

       “Riding on the encouraging return of economic activities, we will continue to build on adaptive channel strategies to capture opportunities in a fluid environment,” he added.

       In the long run, Lim said the group would continue to build its new pillar for halal food after it acquired three food and beverage (F&B) companies under its flagship brand Sri Nona.

       Given that halal food business is growing at a double-digit rate, he pointed out that the group is eyeing to expand its product range and production capacity as part of its long-term strategy to expand into halal markets.

       Meanwhile, Lim said exports would remain as a focus for F&B Malaysia and F&B Thailand, adding that it has boosted revenue growth of 3.6% year-on-year for financial year ended Sept 30, 2021 (FY21).

       It is important to note that strong export growth contributed close to RM900mil or 21.7% of the group’s revenue in FY21 driven by significant progress in Indochina, Greater China, the Middle East and Africa.

       To ensure a more sustainable further, Lim said the group is eyeing at merger and acquisition opportunities, pursuing its ambitions in dairy farming as well as building new capabilities and revenue streams.

       On the recent flash floods in Peninsular Malaysia, he confided the net impact on business has been mitigated to an extent as the group had stocked up on inventories for the upcoming festive season.

       He disclosed that the estimated impact of the floods to the group is about RM40mil, with the biggest item being damaged finished goods, raw materials and packaging materials

       Notably, F&N has in place a property all risk and business interruption insurance cover with regards to its operations affected by the flood.

       Currently, F&N is working closely with insurers on property damage and consequential loss.

       As such, Lim pointed out that the net impact is not expected to be significant saying that its crisis management team has ensured that a quick recovery turnaround and minimised disruption to customers and continues safety of its employees.

       Moving forward, F&N chairman Tengku Syed Badarudin Jamalullail said the group remains on strong footing with its business fundamentals despite the global challenges supported by its strong balance sheet.

       “We can leverage our strong balance sheet and adequate stand-by bank facilities, including a RM3bil sukuk programme at our disposal to be capitalised on when the right opportunity arises.

       “We continue looking at the long run and believe in our long-term market potential regardless of the challenges ahead,” he said.

       Besides that, Syed Badarudin said the latest appointment of the group’s independent non-executive director Datuk Ng Wan Peng is in line with the group’s commitment towards greater gender diversity in decision-making positions.

       To date, the percentage of women in all management positions is around 45%, far exceeding the Malaysian government’s target of 30% female representation.

       On a positive note, F&N shareholders had approved the payment of a final single-tier dividend of 33 sen per share at the AGM, amounting to a total dividend of 60 sen per share for FY21 which is payable to shareholders on Feb 9, 2022.