CEO: F&N to prioritise on improving cost of goods for short-term outlook

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KUALA LUMPUR: Fraser & Neave Holdings Bhd will prioritise on improving and managing prices significantly its cost of goods bought (COGS) for its short-term outlook, amid the powerful 2022 due to the lingering COVID-19 pandemic and better commodity costs, chief govt workplace Lim Yew Hoe mentioned.

Despite this, Lim mentioned it doesn’t distract the beverage, dairy and meals producer from its strategic initiatives for a extra sustainable future.

“Regardless of the short-term outlook, we stay assured on the long-term potential of our markets. The group has weathered many storms in our 139-year historical past and key to our longevity has been the power to embrace short-term influence for long-term sustainability,” he mentioned in a press release after the corporate’s sixtieth annual common assembly right here at present.

The short-term outlook consists of reviewing commerce expenditure, strategic capex funding to extract effectivity and good procurement to get hold of higher worth.

The group would additionally leverage its sturdy manufacturing functionality, diversify its vary of merchandise and refine its product combine and pricing to maximise profitability.

For the long term, the group stays steadfast in its strategic priorities and continues to construct its fourth enterprise pillar – Halal Packaged Food.

Meanwhile, exports would stay a key focus for meals and beverage (F&B) Malaysia and F&B Thailand in monetary yr 2022.

For its monetary yr 2021, sturdy progress contributed shut to RM900 million or 21.7 per cent of the group’s income, fuelled by important progress in Indochina, China, the Middle East and Africa.

“Several capex initiatives might be operational in 2022, comparable to the brand new built-in warehouse constructing in Shah Alam, which options automated storage and retrieval system.

“This will scale back working prices and shorten supply lead instances, the 10MWp rooftop photo voltaic photovoltaic (PV) methods being put in at three crops in Malaysia (Shah Alam, Pulau Indah and Bentong) and assist save between RM3 million and RM4 million in power prices, and the brand new absolutely built-in regional distribution centre in Rojana, Thailand,” he mentioned.

Lim additionally gave shareholders an replace on the group’s Shah Alam plant, which was affected by the current flash flood.

He mentioned the group is at present working carefully with insurers on property injury and consequential loss.

“The estimated influence is about RM40 million, with the largest merchandise being broken completed goods, uncooked supplies and packaging supplies,” he mentioned. – Bernama



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