Fraser and Neave Holdings Bhd (FandN) recorded a higher pre-tax profit of RM388.9 million for the financial year ended Sept 30,
2010, compared to RM279.8 million in the previous year.

Revenue rose 11.2 per cent to RM3,637.7 million from RM3,271.1 million previously.

Its chief executive officer, Datuk Ng Jui Sia, said the company's core food and beverages (FandB) business remained robust with an uninterrupted momentum amidst the recovering regional economies and improved domestic sentiments.

'The increase in operating profit is attributed to the volume expansion achieved by the soft drinks division and the favourable raw material costs enjoyed by the dairies business during the first half of the financial year,' he said in a statement today.

The soft drink division contributed RM1.59 billion to revenue while the dairies division contributed RM1.98 billion.

On the property division, Ng said the group will be focusing on unlocking and enhancing the value of its landbanks, in particular Section 13 in Petaling Jaya.

Ng added, as preparation for the expiry of the Coca-Cola transition agreement in September 2011, the group has and will continue to launch more products and variants as well as strengthen the distribution infrastructure of its remaining core products in Malaysia.

'In line with the group vision of enhancing its equity in the FandB business, FandN has entered into a conditional agreement with Cocoaland Holdings Bhd (CHB) for the subscription of 39.6 million shares in CHB for a total cash subscription price of RM54.6 million.

'Overall, we are cautiously optimistic of the prospects for the current financial year and will strive to sustain and build on current performance despite the expected volatility in currencies and commodities,' said Ng.--Bernama