Food and beverage conglomerate will see its integrated dairy farm F&N AgriValley moving into land clearance and site preparation as the dairy barn site come to near completion, with the first batch of dairy cattle on schedule to meet the farm’s first milking target date of early 2025.
In February this year, F&NHB announced plans to construct a manufacturing plant in Cambodia’s Suvannaphum Special Economic Zone, through an estimated investment of approximately US$37.5 million (RM179.5 million) to strengthen the Group’s dairy product business via a new subsidiary, F&N Foods (Cambodia) Co., Ltd. This initiative encompasses leasing 32,200 square meters of land, constructing the facility, and acquiring machinery to produce sweetened beverage creamer. This strategic move aligns with the natural progression of the business, spurred by the success of exports to Cambodia.
“By localising operations in Cambodia, we aim to enhance our supply chain stability while also contributing to the local community through job creation. This expansion reflects our commitment towards sustainable growth and fostering positive socio-economic impact in the regions in which we operate,” commented Lim.
Lim Yew Hoe, Chief Executive Officer conveyed confidence in the Group’s financial strength and solid cash flow position. He highlighted the positive trajectory of economic recovery in Malaysia and Thailand, partially helped by the return of tourists.
“Given that performance in the first half of the year was heavily skewed to festive sales, we are mindful of performance in the second half,” said Lim.
As for outlook post its earnings report, the group remains vigilant and adaptable to market shifts and wider geopolitical and macroeconomic movements. Lim said he anticipates challenges with the rising costs of raw materials such as sugar, rice, gelatine and cocoa powder but has taken measures to address these challenges as these commodities.
In line with the Group’s performance, the Board declared an interim single-tier dividend of 30 sen per share (2023: 27.0 sen) for the financial year ending 30 September 2024. This dividend amounting to approximately RM110.0 million will be paid on 31 May 2024.
