Medium-Term Notes (IMTN) and Islamic Commercial Papers (ICP) programmes, which have a combined limit of up to RM3.0 billion. The ratings outlook is stable. F&N Capital is the wholly-owned treasury company of Fraser & Neave Holdings Bhd (F&NHB).
The affirmed ratings are a reflection of F&NHB's strong revenue generation from its well-established dairy and beverage lines in Malaysia and Thailand, as well as its very low leverage and high liquidity positions, with very low borrowing levels of only RM1.0 million outstanding versus cash holdings of RM319.9 million.
Additionally, the rating takes into consideration that group revenue increased by 1.8% y-o-y to RM2.2 billion in the first half of the financial year ending September 30, 2022 (1HFY2022), despite a volatile global environment with sharp increases in raw material prices and packaging costs.
“The affirmation of the ratings is indicative of the Group’s strong financial position and prudent management policies. Importantly, it not only recognises the Group’s healthy operational cashflow management but also our ability to remain focused on growing our business under highly challenging market conditions. Moving forward, we will intensify efforts on upholding our leadership positions in the market and executing our upcoming initiatives that will enable us to boldly take strategic steps toward new product offerings, integrated farming and potential partnership development,” said F&NHB Chief Executive Officer, Lim Yew Hoe.
F&NHB is a Malaysian company listed on Bursa Malaysia’s Main Board with expertise and prominent standing in the Food and Beverage business. F&NHB has 2,500 employees in Malaysia, Brunei, Thailand and Indochina, and a constituent of FTSE4Good Bursa Malaysia (F4GBM) and FTSE4Good Bursa Malaysia Shariah Indexes for its strong commitment to responsible business practices on environmental, social and governance (ESG) matters.
