Fraser & Neave Holdings Bhd Annual Report 2021

While Thailand also experienced a rise in COVID-19 infections and lockdown measures, consumer demand remained fairly resilient. Food & Beverages Thailand (F&B Thailand) was able to sustain growth and increased its share in all core segments despite the overall market decline. This was achieved through e$ective loyalty and promotion programmes and continuous e$orts to expand distribution coverage. However, the result was partly negated by unfavourable THB/MYR forex translation. Supported by higher sales to Indochina with double-digit growth in Cambodia and higher OEM exports, F&B Thailand grew its revenue for the year by 2.6 per cent (5.6 per cent increase in Thai Baht terms) to RM1.99 billion. However, operating profit was flat in Thai Baht terms due to higher commodity costs and royalty expenses. In Ringgit terms, operating profit declined 3.0 per cent to RM369.4 million from RM381.0 million in FY2020 due to the strengthening of the Ringgit against the Thai Baht. FOOD & BEVERAGES THAILAND EXPORTS The Export business (from both Malaysia and Thailand) continued to grow and contributed RM896 million to Group revenue this year, fuelled by significant progress and expansion in ASEAN, Greater China, the Middle East, and Africa. This was through e$orts to expand usage of our products via new applications in food service and industrial channels, as well as closer collaborations with key OEM customers to develop new products for sale in more regions. Exports accounted for 22 per cent of the Group’s total revenue in FY2021 and expanded its reach to 85 countries. Our focus on halal markets continues to be fruitful as revenue from halal markets grew about 40 per cent. Indochina market (managed by F&B Thailand) also performed strongly, with Cambodia and Laos collectively contributing over RM250 million in revenue, driven by successful expansion of distribution and reach. * Financial performance of Exports are included in F&B Malaysia and F&B Thailand segment results. Fraser & Neave Holdings Bhd ! Annual Report 2021 Key Messages 037