Price increases for selected products mulled

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.