KUALA LUMPUR (Nov 8): With the recent groundbreaking of the group’s integrated dairy farm in Gemas, Negeri Sembilan, Fraser & Neave Holdings Bhd (F&N) said it is on track to begin the initial milking for its fresh milk project by early 2025, with the products set to be available in the market thereafter.

F&N chief executive officer Lim Yew Hoe said the integrated farm will feature a corn farm (to be used as the main feedstock for the cattle), a dairy farm and a milk processing facility capable of producing 100 million litres of fresh milk yearly for local and international markets.

"In the beginning, we will most likely focus on manufacturing plain milk first, then we will go into flavoured milk, and as we get better, we can go on to making cream," he said during F&N's FY2023 financial results briefing on Wednesday (Nov 8).

Lim indicated that the food and beverage giant has allocated up to RM1.3 billion in capital expenditure (capex) for Phase 1 of the project, which is mostly channelled to expenses for land clearance, barn construction as well as acquisition of the dairy cattle.

Under Phase 1, a total of 4,000 dairy cattle will be brought in from the US, Lim said. Eventually, the farm will have the capacity of housing up to 20,000 dairy cattle.

On Tuesday (Nov 7), F&N reported a net profit of RM536.9 million for the financial year ended Sept 30, 2023 (FY2023), the group's highest full-year net profit since FY2010, thanks to festive sales and out-of-home consumption, as well as contributions from snack and candy maker Cocoaland Holdings Bhd.

Revenue climbed 11.88% to a record high of RM5 billion from RM4.47 billion in the previous year.

Following the stellar results, F&N announced a final dividend of 33 sen and a special dividend of 17 sen for a 50 sen payout — bringing the total dividend for FY2023 to 77 sen per share.

Read also:
F&N shares rise to six-month high after declaring 50 sen dividend
F&N posts highest profit in 13 years, declares 50 sen dividend