KUALA LUMPUR (Jan 24): Fraser & Neave Holdings Bhd (F&N) said the impact of the strengthening ringgit and baht against the US dollar should be "slightly favourable" to the food and beverage manufacturer as it is a net importer of raw materials.

In a statement today, F&N chief executive officer Lim Yew Hoe said the strengthening ringgit and baht, however, present a challenge to the company's export team.

According to the statement, "Lim expected the economic landscape in Malaysia and Thailand to continue to be challenging albeit with higher GDP forecasts and a strengthening currency. Nevertheless, Lim is hopeful that the new products to be launched would provide new growth engines."

Lim said: "In addition, our distributor harmonisation programme should deliver cross-selling benefits as a larger number of our products reach a growing network of outlets. Our leaner operating structure will ensure agility and provide greater competitiveness in an environment where margins are always under challenge."

F&N issued its statement in conjunction with its annual general meeting here today. At Bursa Malaysia, F&N shares settled unchanged at RM28.48 at 12:30pm for a market capitalisation of RM10.44 billion.

At 2:03pm, the ringgit strengthened to 3.9170 against the US dollar.