Kuala Lumpur, Nov 8 – The recent cut in sugar subsidy will not affect the prices of Fraser and Neave Holdings Bhd’s (F&N) products, said its Chief Executive Officer, Somsak Chayapong.
Somsak said the company has been buying the sugar at zero subsidy for the past two years and the government’s decision will not affect the business and the consumers.
“We have bought the raw materials for our products from two local companies, and the recent Budget announcement will not affect our business and consumers at the moment,” he told media briefing after announcing the company’s full-year results 2012/13 here Friday.
He said the implementation of six per cent goods and services tax will not have any impact on the company’s business as seen in Thailand where the tax, which has been implemented for the past ten years, has no impact on the company.
“There will be no major impact in terms of consumption. However, we will still have to make some preparations for the back-up plans,” he said.
Somsak said the company’s products were still relevant in the market and exports were poised to double from 15 per cent to 30 per cent within the next five years.
For financial year ended Sept 30, 2013, its pre-tax profit rose by 34.1 per cent to RM308.71 million from RM230.21 million in the same period last year.
Its revenue rose by 10.6 per cent to RM3.51 billion from RM3.17 billion previously.
F&N said its full-year results were driven by a 7.1 per cent growth in sales at its key soft drinks unit, along with a notable post-flood full-year contribution from its Thai dairy operations which grew by 39.6 per cent.
The consumer heavyweight, which celebrates its 130th anniversary this year, has recommended a final single-tier dividend of 30 sen per share along with a special single-tier of 10 sen per share.
This brings its total dividend for the year to 60 sen a share as opposed to 58 sen last year.
– Bernama
