Following the announcement of the acquisition of Sri Nona for RM60 million in December last year, Frasers Holdings (F&N, 3689, major consumer products) plans to develop halal food business as a new growth pillar.
Sri Nona is famous for its series of Malay rice dumplings and is also the largest brand of Malay rice dumplings in my country. Its oyster sauce ranks top three in the series.
Frass Holdings Chief Executive Officer Lin You he said in a filing on Bursa Securities that the latest investment will be used to expand more halal food platforms to meet the growing demand for convenient and ready-to-eat products.
He believes that with strong R&D capabilities, this investment will help expand the category of halal food, expand products, launch more innovative products, and increase profit margins.
He said that due to movement control and changes in consumer buying behavior, the company has strengthened its access to the market and channel strategies, by meeting consumers' needs and expectations, and narrowing the distance with consumers, including expanding e-commerce in 2020.
Lin Youhe pointed out that the company recently opened an F&N Life distribution center in Kuala Lumpur to provide consumers with more choices, such as self-service pick-up and next-day delivery services for online shoppers.
"We develop a long-term business and believe in the long-term market potential. Therefore, no matter how big the challenges ahead, we will continue to explore opportunities to improve business performance and profits.
He said that the company will promote growth and cost efficiency under the impetus of three strategies (namely innovation, cost competitiveness and excellent execution).
"As we enter another challenging year, our knowledge, skills, expertise, capabilities, resources and commitments will continue to guide us to achieve our goals."
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