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decline is primarily due to reduced
orders from customers in the aviation
sector. Meanwhile trading activities
are making up a greater portion of
FISB’s portfolio and we see trading as
a potential source of future growth for
FISB with revenue contribution from
this segment more than doubled y-o-y.
As a food processor, we already
operate to the highest standards of
cleanliness and hygiene to protect our
employees, to maintain the safety and
high quality of our products. In light
of the Covid-19 pandemic, we have
implemented additional employee
safety measures based on guidance
from the relevant health authorities
across our facilities, including
enhanced hygiene protocols, social
distancing, mask use and temperature
screenings. As of today, all of our
facilities are operating without
significant disruption.
FISB: Revenue & PBT
Contribution
(Rm million)
Revenue PBT
0.88
5.52
0.48
2019
2020
6.31
-12.5%
-45.5%
Food Division : Full Sail Ahead
FISB: Revenue Contribution By Category
(Rm million)
FYE2019
FYE2020
-18.8%
-8.5%
-24.2%
4.08
4.46
0.75
0.99
0.85
0.69
Client/3
rd
Party Brands
In-House Brands
Others
Outlook
The Covid-19 pandemic has had an
impact on demand across some of
the division’s major markets as a result
of shifts in consumer behaviour and
spending patterns. Following the
imposition of movement controls in
mid-March of this year, we have seen
a near term y-o-y increase in demand
for our canned tuna products and a
corresponding decrease in export
demand for tuna loins and fishmeal.
The pandemic has also curtailed
demand for food and beverage
packaging on the back of reduced
foot traffic to food outlets due to
movement restrictions. Although we
expect volumes to improve in tandem
with resumption of economic activities,
the outlook beyond that will depend
on the impact of the overall economy
and resultant impacts on consumer
spending. Further, the recovery in
demand that we are seeing underpins
the importance of ensuring that we
are able to mitigate any potential
disruptions to our supply chains and
that alternative sources for materials
are available.
For this current financial year, our
aim is to: (i) expand market share
by developing and introducing new
products; (ii) capitalise on our existing
customer relationships and business
competencies; and (iii) to improve the
security and agility of our supply chain,
as well as to focus on operational
improvements to reduce costs and
energy consumption. Given the
demand uncertainties and evolving
circumstances, we will nevertheless
assess the timing of any capital
investments and limit it to those that
are necessary or important to our
growth strategy and productivity
improvement programmes.
kumpulan Fima Berhad
(197201000167)(11817-V)
Annual Report 2020
51