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Halal food set to be F&N’s new pillar of growth

19 Jan 2021 / 23:17 H.

PETALING JAYA: Fraser & Neave Holdings Bhd (F&N) is set to establish halal food as the group’s new pillar of growth following the acquisition of three food & beverage (F&B) companies – Sri Nona Food Industries Sdn Bhd, Sri Nona Industries Sdn Bhd and Lee Shun Hing Sauce Industries Sdn Bhd – for up to RM60 million.

The investment will enable F&N to add an established Malaysian household food brand to the group’s portfolio of renowned brands.

F&N CEO Lim Yew Hoe said the group is constantly exploring ways to “reimagine” its business via 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. 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,” said Lim during the group’s AGM today.

Sri Nona is best known for its flagship product, the Nona ketupat (rice cakes) range, which is the number one 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.

“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. In the future, we aim to set up more F&N Life fulfilment centres throughout Malaysia to create a seamless consumer experience,” Lim added.

F&N has positioned itself to sustain its growth by investing in various initiatives to drive innovation and business sustainability. The group has committed RM30 million to fund renewable energy programmes including the 10MWp solar roof project at its Shah Alam, Pulau Indah and Bentong plants.

Besides that, three ongoing capital expenditure projects are expected to be completed in FY2021, namely a RM182 million integrated warehouse in Shah Alam which is equipped with an Automated Storage Retrieval System (ASRS), a 20,000-sqm Regional Distribution Centre in Rojana to be fitted with a RM40 million ASRS, and a RM20 million 200 bpm drinking water line and warehouse at the Kota Kinabalu Park in Sabah.

Shareholders at the AGM approved a final single-tier dividend of 33 sen per share, amounting to 60 sen per share payable to shareholders on Feb 5. The entitlement date of the dividend is Jan 21.

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