By G. Sharmila
Lim Yew Hoe
Fraser & Neave Holdings Bhd (F&N) has again deferred the project timeline of its mixed-integrated development in Petaling Jaya called Fraser Square due to uncertain economic sentiment.
“There is no financial impediment due to our deferment and we are taking the opportunity from the lull in the market to review the total project together with our joint-venture partner – Frasers Centrepoint Ltd,” F&N chief executive officer Lim Yew Hoe said today after the company’s full-year 2014/2015 results briefing.
He said that they, along with their partner, are relooking the development concept of the project to gauge what is suitable for the market today. He added that they are reviewing the concept and plan to come up with answers within the next two quarters.
In May, the company said it was planning to launch the RM2 billion Fraser Square project by the second quarter of 2016. Prior to that, it had expected to launch the project in April this year, however, it chose to delay it due to weak market sentiment, according to reports.
According to reports, the initial plan for the project was an integrated development consisting of five phases, comprising 900 service apartment units atop a shopping mall, small offices, a corporate office and hotel components.
F&N surpassed a revenue mark of RM4 billion for the 2014/2015 financial year, an expansion of 6.3% over last year, due to solid performance and higher contributions from its dairy business units in Malaysia and Thailand. Profit before tax, meanwhile, increased by 5.8% to RM333.8 million.
Segment-wise, the Malaysian dairy business saw a 3% increase in revenue to RM1.08 billion and the Thai dairy business saw a 17.7% increase in revenue to RM1.47 billion.
The soft drink business revenue, however, declined by 0.7% to RM1.51 billion, impacted by East Coast floods in the first quarter, lower consumer sentiment post-goods and services tax (GST), increasing competition and a loss of two months modern trade sales of Red Bull in view of the contract’s expiry on Sept 30.
Commenting on the prospects for the 2016 financial year, Lim said: “The weaker consumer demand is expected to be characterised by intense price competition.
“Selling costs, in particular advertising and promotion-related costs are expected to increase significantly, but we believe with the sales and marketing strategies that we have initiated, we can maintain our leadership market positions.”
He also said that F&N’s total beverage market share is between 25% and 30% currently.
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