F&N going big on energy conservation
05 Nov 2020
Fraser & Neave Holdings Bhd (F&N) is committing RM30mil over the next two years for energy conservation initiatives, which will result in a minimum 20% of the group’s total energy requirement sourced from solar by 2022.
As part of the investment, F&N will install 10MW of total solar energy capacity at its plants in Shah Alam, Pulau Indah and Bentong.
The 10MW solar roof project is expected to be completed next year and will generate clean energy equivalent to the electricity consumption of 3,700 households in the country.
In a virtual briefing, CEO Lim Yew Hoe said the new initiatives would build on the work that is already underway to minimise the environmental impact of the group’s operations.
“F&N’s new warehouse at Shah Alam, and the Regional Distribution Centre in Rojana, Thailand – both expected to be operational in the second quarter of 2021 – will significantly reduce shunting and double handling between our plants and third-party warehouses.
“Meanwhile, the installation of Automated Storage and Retrieval System at both warehouses will almost eradicate the use of forklifts, thus cutting our fuel usage and greenhouse gas emission, ” he said.
For 2021, F&N will channel its efforts to make its subsidiary in Dubai an effective location to expand into the Middle East and Africa.
F&N’s export market generated close to RM800mil in revenue amidst the pandemic, making up 20% of total group revenue of RM3.99bil in financial year 2020 (FY20).
F&B Thailand contributed the bulk of the group’s operating profit for FY20 at 72.4%, while F&B Malaysia contributed 27.6% of operating profit.
The shrinking profits from Malaysia were mainly due to compressed margins as a result of higher cost and competition from peers, particularly in the beverage segment.
F&N registered a net profit of RM410.38mil in FY20, compared with RM410.26mil in the previous financial year.
CGS-CIMB, in a research report, expects F&N to post a stronger set of results in FY21, driven by a recovery in sales from its Malaysian operations, given the low base effect in FY20 due to the movement control order period and ongoing cost control initiatives.
In addition, F&N is expected to increase its export sales amid ongoing efforts to penetrate more halal markets as well as new product launches, especially in the “healthier” segment, to capture the growing demand for products in this segment.
Source: The Star Posted on : 05 November 2020