KUALA LUMPUR: Fraser and Neave Holdings Bhd (F&N) anticipates better growth for the second half of 2023 (2H 2023), underpinned by strong domestic demand in Thailand, an influx of tourists from China, and contribution from Cocoaland Holdings Bhd.
F&N chief executive officer Lim Yew Hoe said the group would also focus on the volume and brand development for the food and beverages (F&B) segment in Malaysia for the rest of 2023.
“Overall, the financial performance should go up and do better compared to the second half of last year,” he said during the F&N financial year 2023 half-year financial results briefing here today.
Lim added that business in Thailand was affected by tourist arrivals but, with the reopening of borders in China now, the tourism segment is expected to recover from May onwards and would contribute to better results for 2H.
However, he said the group remain cautiously optimistic with some commodity prices remaining challenging such as milk, palm oil and sugar, which are expected to be high throughout 2023.
“We believe the set-up and cost measures being undertaken would mitigate the challenges and able to help the business do better,” he said.
Lim also said that the group would navigate economic uncertainties by better forecasting and hedging but limited to certain products.
“Our revenue will continue to grow but volume is subject to circumstances,” he said.
On the integrated dairy farm at Ladang Permai Damai, he said the group remains committed to producing the first milking in December 2024, after the completion of Phase 1, which will allow F&N to be less dependent on imported milk.
“Today, F&N continues to evolve its business through strategic acquisitions and expansions of its footprint across the F&B value chain to become a stable and more sustainable business for all,” he said.
The group’s net profit rose to RM101.18 million in the second quarter ended March 31, 2023 (2Q FY2023), from RM93.87 million a year earlier, driven by better performance in its F&B business units.
Meanwhile, revenue for the quarter rose by 8.9 per cent to RM1.21 billion from RM1.11 billion in the previous corresponding period. – BERNAMA
