FGV HOLDINGS BERHAD | ANNUAL INTEGRATED REPORT 2023 73 From left • Dato’ Iszhar Ibrahim - CEO, FGV Dairy Farm Sdn Bhd • Shammim Azad Kamruzaman - Officer-in-Charge for Consumer Products Division and CEO Delima Oil Products • Abdul Razak Aya - Head, Integrated Farming • Ab Aziz Ismail - Group Accountant, Special Projects OPERATIONAL PERFORMANCE The Consumer Products Division is dedicated to establishing a strong commercial base while expanding our consumer products within domestic and international markets. We leverage innovation to create high-value products tailored to diverse consumer needs and tastes, and we regularly explore new brands in an effort to reach untapped market segments. With a focus on growth, innovation, and diversification in consumer goods, we not only ensure that our existing products remain competitively priced amid strong industry competition, but aslo continually strive to maintain our market presence through ensuring top-of-mind brand awareness. GROUP BUSINESS REVIEW Overview Significant external challenges in 2023 reshaped consumer spending behaviours and purchasing power. A notable factor was the rise in consumer prices driven by increasing operational costs and higher interest rates, which then impacted overall consumer spending. In response to these challenges, we initiated a series of strategic initiatives including engaging policymakers to ensure regulatory support for our industry and streamlining our supply chain to address inefficiencies in procurement, manufacturing and distribution. This was achieved through investments in human capital, infrastructure, new technologies and partnerships with service providers. During the review period, our Saji cooking oil maintained its position as the leading cooking oil brand in Malaysia with a market share of 44.7%. The appointment of 11 new regional distributors has made a significant positive impact on our local expansion programme in line with our Business Plan. Despite facing intense competition in the market, we successfully expanded Seri Pelangi margarine’s market share to 49.0%, further solidifying our position in the industry. Moreover, to cater to the evolving needs of our customers, we introduced four new stock keeping units (SKUs) under the Saji brand, including Krimer Pekat in various sizes, Coconut Cream reformulation and Ketupat Mini, both of which are now available in modern trade and general trade outlets nationwide. Domestic Market Share Saji Cooking Oil 44.7% Seri Pelangi Margarine 49.0% In alignment with our operational strategy for 2023, we focused on leveraging the FMCG Distributorship Network Model to enhance our network of distributors, wholesalers, and retailers. This approach enabled us to enhance the improve the availability and accessibility of our products, which boosted our footprint and presence in the consumer landscape. CONSUMER PRODUCTS
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