3 Slides From Fraser and Neave Limited’s Management Investors Should See

Fraser and Neave Limited  (SGX: F99) was founded way back in 1883.

Better known as F&N, the company has gone through changes in recent years to emerge as a business with three main segments: Beverages, Dairies, and Printing & Publishing.

A recent investor presentation delivered by the company had shared more information about its business. Here are three important slides from the presentation deck.

The portfolio

Source: F&N’s investor presentation

The slide above gives us a sense of F&N’s portfolio and how the pieces come together.

Dairies and soft drinks make up a big part of F&N’s business. The former contributed 54% of the company’s total revenue in the fiscal year ended 30 September 2015 (FY2015) and 52% of total earnings before interest and taxes (EBIT). The latter made up 30% of sales and 29% of EBIT.

On the geographical front, Singapore and Malaysia make up 22% and 47%, respectively, of F&N’s business. ASEAN took up another 26%, underlining the fact that F&N is very much a regional business.

Market positioning

Source: F&N’s investor presentation

The slide you see above delves deeper into F&N’s core brands.

In the Soft Drinks business, F&N holds a leading position in Malaysia. For instance, F&B believes that it has a 48% market share in Malaysia for carbonated drinks and isotonic drinks. It is also leading in the isotonic, water, and soya segments in Singapore. F&N believes that it has a whopping 74% market share of Singapore’s isotonic drinks market.

Elsewhere, F&N leads in Malaysia, Thailand, and Singapore for canned milk. F&N estimates that it has a 57% market share in Malaysia and a 49% market share in Thailand.

F&N’s partnerships

Source: F&N’s investor presentation

F&N is also a strategic partner to another Singapore-listed company, Thai Beverage Public Company Limited (SGX: Y92). As of 8 December 2015, the latter owns a 28.6% stake in the former.

There are benefits to this alliance. F&N pointed out that Thai Beverage has a strong distribution network in Thailand, amounting to 400,000 points of sale. The combined presence of the two companies also covers over 90 countries. Furthermore, F&N has secured the rights to manufacture Nestle’s dairy brands like Carnation for the ASEAN region.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of Nestle Malaysia. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.