KUALA LUMPUR: Fraser & Neave Holdings Bhd (F&N) aims to increase its export volume to RM1 billion by the financial year ending September 30, 2022 (FY22) from RM896 million achieved in FY21.
F&N chief executive officer Lim Yew Hoe said this will be driven by the company's greater traction in halal markets, which now contribute 20 per cent to its export revenue.
The growth was also fuelled by its Dubai subsidiary, which is now fully operational, and the good performance in Indochina and exports to key original equipment manufacturer (OEM) accounts.
"I hope we can materialise the RM1 billion export volume target by FY22.
"We need to take this into perspective. I hope to sell more volume. Not sell the same volume but at a higher price because of the commodity price increase.
"I hope our sales in volume will also grow in tandem double digits (in FY22)," he told reporters during F&N's FY21 financial highlights virtual briefing today.
In FY21, F&N's export business from Malaysia and Thailand continued its growth momentum and contributed RM896 million to group revenue, fuelled by significant progress and expansion in ASEAN, Greater China, the Middle East and Africa.
This is through efforts to promote and expand usage of its products via new applications for food services and industrial channels, as well as closer collaborations with key original equipment manufacturer (OEM) customers, which resulted in new products and additional regions.
Meanwhile, F&N chief financial officer Lai Kah Shen said the company would consistently implement a delayed cost pass-through of its products to its consumers despite the further increase in commodity prices and other input materials.
Lai said in FY21, F&N has been impacted quite significantly with the rising cost in operations of about RM150 million, but only reflected about RM40 million decrease in net profit for the year.
"This, coupled with looking at our efficiency and how we can absorb the additional cost further, is how we have been managing with the commodity cost increase.
"If we exclude the restructuring cost of RM21 million that was incurred in FY21, actually we have absorbed most of the cost increase from commodities.
"It shows the effectiveness of the measures that we have taken," he added.