KUALA LUMPUR: Fraser & Neave Holdings Bhd (F&N) expects further price increases of three to four per cent across selected products as it grapples with rising commodity costs while balancing consumer affordability and demand.
Chief executive officer Tarang Gupta said the company had raised prices across its product portfolio in Malaysia and Thailand over the past 12 to 15 months.
He said further adjustments could be necessary if commodity prices continued to rise, although the company would remain mindful of consumer affordability and demand.
“Will pricing come into play? Surely it will come into play. The point being that we have to also protect our volumes, protect our consumers,” he told reporters after the group’s financial year 2026 (FY26) results announcement today.
Gupta said commodity prices, including sugar, tin and energy, had been trending upwards, adding to the challenges faced by the food and beverage group.
However, he said F&N would prioritise operational efficiencies before considering further price increases.
“We are doing the analytics of how consumer consumption is, we are doing the pack-price architecture, we are doing revenue growth management, operational efficiencies. So, a combination of all of that.
“It will not be a blanket answer to say that only price increase or only efficiencies. I think it will be a blend of that.”
On supply chain disruptions arising from tensions in the Middle East, Gupta said the availability of raw materials had stabilised, although sourcing them at favourable prices remained challenging.
He said commodity prices had started rising over the past one-and-a-half quarters and were expected to increase further.
“Are we getting the materials? Yes. Are we getting the materials at a cost that we would want, because the consumer can only pay so much? That’s a bit of a challenge,” he said.
Separately, F&N expects to need at least another six months to assess the performance of its operations in Cambodia following the opening of its new factory.
Gupta said the period was necessary to evaluate market acceptance, distributor orders and repeat purchases before the group could provide a clearer picture of the business’s performance.
He said initial trade acceptance had been encouraging, but one month was too short to assess the operation’s full potential.
Gupta said the group needed more time to translate the positive initial market response into actual business performance.
“Another six months will give us a clearer picture of how the Cambodia operations are progressing,” he said.
Gupta said the group’s focus in FY27 would be on building its business pipeline and expanding its presence in the Cambodian market.
He said F&N’s business model in Cambodia had shifted from trading to local manufacturing following its investment in the factory.
The transition has resulted in a smaller business with higher initial operating costs, which will need time to achieve greater scale.
However, Gupta said the group did not expect significant additional investment in Cambodia following the completion of the factory.