Fraser & Neave Holdings Bhd Annual Report 2021

Chief Executive Officer’s Statement Dear Shareholders and Stakeholders, The year 2021 has been exceedingly di!cult, with the prolonged pandemic situation and geopolitical tensions. All that, plus rising oil prices, saw the industry contending with a significantly higher cost of production with surges in commodity prices, particularly sugar, palm oil and milk-based commodities, and exacerbated by an increase in supply chain costs. Movement restrictions that escalated into total lockdown during the year also meant reduced workforce at our plants. Couple that with supply chain disruptions, exports were constrained. Consumer demand was also adversely a$ected by dining-in prohibition at food and beverage outlets and restricted operating hours for convenience stores. Our focus within this scenario has been to ensure business continuity. We took immediate steps to intensify safety and preventive measures to safeguard our people, adjust our sales & marketing initiatives according to the new operating landscape and meet the shift in consumer consumption behaviour, as well as ensure continued supply and availability of our products with our trade partners. Key to our longevity has been our capacity for constant self-adaptation and evolving through more than a century of change, fuelled by the passion and commitment of our people. This same spirit navigated us to deliver another resilient performance for the financial year ended 30 September 2021 (FY2021). Guided by our Global Values of Creating Values, Collaboration and Caring for Our Stakeholders, we have entrenched our business sustainability by ensuring we remain relevant to the people that matter. So, while it was a tough year, it was also rewarding; and it gives me pleasure to describe our initiatives in more detail in the following pages. 030