F&N looks at new markets to beef up exports

Chief executive officer Lim Yew Hoe said the company was evaluating what types of products would be relevant for those markets.

"Our view is that within the next five years, we want to grow our exports to 500 million ringgit, which should account for around 10 per cent of our revenue," he said at a briefing on the company’s earnings for the financial year ended September 30.

He said exports currently accounted for less than 10 per cent of the company’s total revenue, adding that the fallen ringgit had helped producers in Malaysia export more overseas.

"In the long term, we want to improve our economies of scale and build brands, so that we can become a brand of choice for consumers."

Separately, Lim said F&N would be ramping up its capital expenditure significantly for its current financial year ending September 30 to fuel its next stage of growth.

He said capex for its current financial year "will be higher than the 70 million ringgit allocated in 2015".

"We have a number of projects that we’re working on, but we can’t reveal what they are for now.

"We won’t be investing in new businesses just because we think we can. But it (the capex) will be significantly higher than last year."

Lim said F&N expected to finalise its capex figure for 2016 within the next three months.

The company posted an 8.8-per-cent lower net profit of 56.72 million ringgit (Bt469 million) in the fourth quarter ended September 30 compared with a year earlier on a much lower contribution from the soft-drink segment.