KUALA LUMPUR, Nov 5 — Fraser & Neave Holdings Bhd (F&N) will continue to maintain the necessary prices for its products amid cost pressure due to high commodity prices.
Chief executive officer Lim Yew Hoe said the company was mindful of consumers, who were affected by COVID-19, and raising the prices would be the last resort.
“We will get hit first and see whether we can absorb it and if not.. we will increase it by phases so the impact on consumers will be gradual,” he told reporters at the F&NHB Financial Year 2021 results briefing, held virtually today.
Commenting on sugar tax expansion in Budget 2022, Lim said the company was the least affected by it as F&N products did not fall in the categories mentioned in the budget.
The Minister of Finance had said that the government intended to extend the imposition of excise duty on sugary beverage products in the form of chocolate or cocoa-based premixes, malt, coffee and tea.
Lim said the company was studying Cukai Makmur, a one-off measure announced in Budget 2022, as it would affect the dividend payout as it recommended a final single tier dividend of 33.0 sen per share.
“There is one thing that is unclear… that would be the prosperity tax and at this moment we are checking the details to understand whether it will impact overseas income which covers the dividend that we received from our operations in Thailand,” he said.
Cukai Makmur was proposed in Budget 2022, whereby earnings above the RM100 million mark will be taxed at a rate of 33 per cent instead of the blanket 24 per cent rate previously.
F&N posted a lower net profit of RM395.16 million for the financial year ended Sept 30, 2021 (FY2021) from RM410.38 million in FY2020.
