F&N to pay final dividend of 38 sen

Fraser & Neave Holdings Bhd (F&N) (3689) will pay a final single-tier dividend of 38 sen to its shareholders after the beverage firm reported a record net profit last year.

F&N's net profit for the year ended September 30 2010 surged 48.6 per cent to RM307 million on the back of 11.2 per cent increase in revenue to RM3.64 billion.

The 38 sen final dividend brings the total net dividend for the year to 54.5 sen, compared with 41.75 sen paid in the previous year.

F&N, meanwhile, plans to duplicate the success of 100Plus and F&N brands outside its traditional market in Malaysia.

Chief executive officer Datuk Ng Jui Sia said subsidiary F&N Beverages Marketing Sdn Bhd (FNBM), had received the rights to market, distribute and sell F&N's range of products in the additional territories in Thailand and Brunei under its current distribution licensing agreement by its parent company Fraser & Neave Ltd.

"While the Brunei market is relatively small with a volume close to half a million cases a year, the ready-to-drink market in Thailand is estimated at RM20 billion, and will offer significant growth potential for the group in the medium- to long-term," Ng said in a statement.

Thailand is not entirely new to the group.

Ng said over the past four years, the F&N group had established significant presence there through its dairies business. The latter contributed substantial revenue amounting to RM867 million during the last financial year.

"The group is currently in the midst of drawing up an expansion plan for the beverages business in Thailand, and will initially focus on southern Thailand using our iconic 100Plus brand as the launching pad," he said, adding that a new wholly-owned subsidiary will be formed to manage the distribution business in Thailand.

To speed up its entry into the market, F&N is currently discussing with a potential distribution partner.

"We hope to finalise the discussion and arrangement within the next three months," he said.

In Brunei, a branch office under FNBM is being established.

Ng said sales of 100Plus and F&N's range of products will only start there after the transition agreement with Coca-Cola expires on September 30 this year.

Under the agreement signed with Coca-Cola, F&N Group is free to introduce new brands or categories, except for cola and lemon-lime carbonated soft drinks, from January 27 2010 for domestic and export markets.

The category that restrains cola and lemon-line carbonated soft drinks ends on May 31 next year. - by btimes.com.my