Fraser & Neave Holdings Bhd (F&N), is positive about business growth in 2006 which it expects will be boosted by its glass packaging operations, contribution from its property project and increased fo…
Fraser & Neave Holdings Bhd (F&N), is positive about business growth in 2006 which it expects will be boosted by its glass packaging operations, contribution from its property project and increased focus on the soft drinks and dairy segments. Chief executive officer Tan Ang Meng said upgraded operating efficiencies at its Chinese manufacturing plant are expected to improve glass packaging operations. The glass segment contributes about 14%, or about MYR 280 million, to the group“s turnover. F&N“s wholly-owned subsidiary, Malaya Glass Products Sdn Bhd (MGP), has switched to natural gas to cut costs while Kuala Lumpur Glass Manufacturers Sdn Bhd (KLG) will do by the end of 2005. “The furnace failure at MGP in August last year affected our results, but we are confident that the glass segment is capable of returning to its earlier level of MYR 30 million” Tan told reporters at a briefing to announce the company“s financial results in Kuala Lumpur on 9 November 2005. F&N has expanded its glass division from three to five factories with two plants in Malaysia and one each in China and Vietnam, and a USD 35 million joint-venture plant under construction in Thailand. “The plant is about 84km from Bangkok and is expected to be operational by March 2007,” he said. For the financial year ended 30 September 2005, F&N“s revenue rose 12% to MYR 1.94 billion from MYR 1.73 billion in the previous year, while operating profit increased 17.2% to MYR 182.86 million from MYR 155.99 million. Earnings per share rose to MYR 0.37 from MYR 0.327 in the previous year. Net profit rose 13.3% to MYR 131.95 million from MYR 116.42 million previously due to improved margins in the soft drinks and dairy businesses despite strong cost pressures. The soft drinks division contributed 57% to group revenue followed by dairy 30%, glass 14% and property 4%. “All operating divisions registered increased revenue and bottom lines. Operating profit for the recovering glass division improved by 45%,” Tan said. The group has recommended a final dividend of MYR 0.28 gross per share compared with MYR 0.24 gross the previous year. This would bring total gross dividends for the year to MYR 0.42 per share.