KUALA LUMPUR (Nov 8): Fraser & Neave Holdings Bhd is expecting to see improvement in both revenue and profit in its financial year ending Sept 30, 2018 (FY18), as its capacity-building and cost reduction measures initiated this year near completion.

Speaking at F&N's FY17 results briefing today, chief executive officer Lim Yew Hoe said the consumer products manufacturer hopes to at least hit its FY16 bottomline figures, after the group successfully digested the upswing in commodity and sugar prices this year through various transformation programmes.

"The increase in prices of raw materials in FY17 are more than twice the on-year reduction in operating profit," Lim said.

"Essentially, we have strengthened at a fundamental level to be more competitive with greater capacity to meet external challenges," he added.

F&N saw net profit decline 16.09% to RM323.38 million in FY17, from RM385.37 million, dragged mainly by one-off restructuring costs totaling RM48.4 million, comprised mostly of voluntary separation scheme costs incurred when rescaling its workforce. Operating profit declined 20.4% to RM345.1 million.

The restructuring will allow F&N to permanently reduce some RM40 million in annual operating costs, Lim said.

The group is looking at increasing capacity, with exports as one of the focus. Plans include to de-bottleneck its dairy products manufacturing plant in Pulau lndah to add to exports to Africa and Middle East, which has been initiated but is still at an early stage. 

At noon market break, shares of F&N traded 2 sen or 0.08% lower at RM25.42, giving it a market capitalisation of RM9.33 billion.