Kumpulan 2 - Kancil Group Project

EPPM 2053
PENGURUSAN KEWANGAN
SET L1 SEM 1 SESI 2022/2023
KUMPULAN 2 : KANCIL
NAMA PENSYARAH: DR. MOHD HAFIZUDDIN SYAH
TUGASAN : ANALISIS KEWANGAN

F&N SDN BHD & KAWAN FOOD SDN BHD
DISEDIAKAN OLEH :
AHLI KUMPULAN NO MATRIX
YAMUNASRI A/P SUPPIAH A183373
TAMARAISELVI A/P SUNDHARAJOO A183380
MUHAMMAD HAFEEZ BIN MD ZAINI A183748
HOSNIAH BINTI SAPIIN A183372

1.0 - COMPANY BACKGROUND OF KAWAN FOOD SDN BHD
Kawan Food Berhad is one of Malaysia’s leading exporters and largest

manufacturer of frozen Asian food delicacies worldwide.They provide the
consumers with authentic, safe and highest quality products at affordable price,
while making a difference in the lives of shareholders, consumers, business partners,
employees and the community. That enables Kawan Food Berhad to achieve market
leadership is an unwavering commitment to the values of excellence, innovation,
reliability, growth, fairness and good citizenship. The vision of KFM to be the
leading international company that provides products which create values and
enhance the lifestyle of our customers. The mission of KFM to enrich people’s lives
through consistent delivery of high quality, safe and convenient food,to be the leader
in developing our new innovation with advance technology,to create values in a
sustainable way to our stakeholders and contribute to economic, social and
environmental developments.
The core values of KFM such as RESPONSIBILITY to take ownership and

responsibility of the results ,TEAMWORK to work together as a team to achieve
the mission by having open communication, mutual respect and sharing of
knowledge,INTEGRITY that committed to be fair & honest in all dealings and
adhere to the highest ethical standards,DISCIPLINE that are dedicated and
committed to achieve higher efficiency and effectiveness and lastly INNOVATIVE
that embrace new ideas and constantly changing to meet customer’s needs.
History KAWAN FOOD BERHAD has more than 40 years of production

experience.It all started more than 40 years ago at a modest family-run business that
made and sold home-made traditional pastries to local groceries and supermarkets.
The founders took great pride in work, baking and packing the food with love and
care. While the food was sold fresh on the same day it was made, business was
nevertheless limited to geographical locations that were not too far away; any further
and it would have been difficult to ensure the food stays fresh throughout the
journey! By the mid-1980s, however, as the business was gaining a steady lead in
the local market, there was the inevitable need to expand beyond Malaysia shores.
1.1 - COMPANY BACKGROUND OF F&N SDN BHD
The Shariah-compliant firm Fraser & Neave Holdings Bhd (F&NHB) was
founded in Malaysia and is traded on Bursa Malaysia's Main Board. The Group's
core businesses, which include the production, sale, and marketing of dairy, food,
and beverage goods, generate a yearly revenue of RM4 billion. With a long history
dating back 139 years, F&NHB is now recognised as a leading provider of
high-quality, Halal products. With 22 brands in its portfolio, F&NHB is a market
leader in a number of categories. These brands include 100PLUS, F&N Fun
Flavours, F&N SEASONS, OYOSHI, F&N Magnolia, FARMHOUSE, F&N ICE
MOUNTAIN, condensed and evaporated milk sold under the F&N, TEAPOT, Gold
Coin, Cap Junjung, IDEAL, and CARNATION brands, as well as NONA's brand of
ketupat and sauces.
The company has a mission to be a stable and sustainable food and beverage
(F&B) leader in the ASEAN region and mission to be ASEAN’s leading provider of
quality and innovative products that consumers choose and trust. The company’s
Global Values serve as a compass for their actions and describe how they behave in
our organisation, they include collaboration, creating values and caring for
stakeholders. For collaboration values, they leverage the power of inherent strengths
and diversity to create inclusive synergies and commit to team goals. Under
collaboration values, they are passionate about applying new ideas and seizing
opportunities to make a positive impact on our organisation and around the world.
For creating values, they embrace our stakeholders’ perspectives with good
intentions and right mindsets to create long-term, sustainable partnerships.
F&NHB finished acquiring the whole ownership stake in Cocoaland Holdings
Bhd in November 2022. With this acquisition, the Group will be able to expand into
more Halal food categories and address the growing demand for packaged food
items in addition to adding a number of well-known confectionery and snack brands
from Malaysia to its portfolio. F&NHB is on schedule to start the upstream fresh
milk business for the downstream production and distribution of fresh milk with the
completion of the Ladang Permai Damai transaction. F&NHB is a member of the
FTSE4Good Bursa Malaysia (F4GBM) Index thanks to its unwavering dedication to
ethical business practises in relation to environmental, social, and governance (ESG)
issues. Over 2,500 individuals work for the Group throughout its activities in
Malaysia, Brunei, Thailand, and Indochina.
2.0 - FINANCIAL PERFORMANCES ANALYSIS OF
KAWAN FOOD SDN BHD
2.1 - LIQUIDITY RATIO
2.1.1 - Current ratio
=Current asset / Current liabilities
Years 2017 2018 2019 2020 2021

RM’000 RM’000 RM’000 RM’000 RM’000
Current 89,732 89,802 89,802 105,952 138,222

asset
Current 17,802 18,640 16,742 14,956 15,731
liability
5.04 x 4.82 x 5.36 x 7.08 x 8.79 x
The current ratio is a liquidity ratio that is used to calculate a company’s ability to
meet its short-term debt and obligations, or those due in a single year, using assets
available on its balance sheet. Kawan Food’s current ratio increases from 2018 to
2021 which indicates that the liquidity position was somewhat strong and it shows
the company’s ability to convert its assets into cash to pay off its short-term
liabilities.
2.1.2 - Quick ratio
=Current asset - Inventory/Current liability
Years 2017 2018 2019 2020 2021

RM’000 RM’000 RM’000 RM’000 RM’000
Current 89,732 89,802 89,802 105,952 138,222

asset
Current 17,802 18,640 16,742 14956 15731
liability
5.04 x 4.82 x 5.36 x 7.08 x 8.79 x
The quick ratio represents the extent to which a business can pay its short-term
obligations with its most liquid assets. In other words, it measures the proportion of
a business’s current liabilities that it can meet with cash and assets that can be
readily converted to cash. The quick ratio is also known as the acid test ratio, a
reference to the fact that it’s used to measure the financial strength of a business. A
business with a negative quick ratio is considered more likely to struggle in a crisis,
whereas one with a positive quick ratio is more likely to survive. Kawan Food’s
quick ratio increases from 2018 to 2021 which measures the company’s ability to
pay off short term obligations without relying on the sale of inventories are much
stronger.
2.2 - ASSET MANAGEMENT RATIO
2.2.1 - Day Sales Outstanding
= Account Receivable/ Average Daily Sales

Years 2017 2018 2019 2020 2021
RM’000 RM’000 RM’000 RM’000 RM’000
Account 89,732 89,802 89,802 105,952 138,222

receivable
Average 545.23 555.51 594.69 707.51 699.36
daily sales
165 days 162 days 151 days 150 days 198 days
Days sales outstanding (DSO) is a measure of the average number of days that it
takes a company to collect payment for a sale. DSO is often determined on a
monthly, quarterly, or annual basis.To compute DSO, divide the average accounts
receivable during a given period by the total value of credit sales during the same
period, and then multiply the result by the number of days in the period being
measured. In the year 2021, the DSO of Kawan Food was 198 days which indicates
the customers, on average, are not paying the their bills on time and the credit
manager of the company should take steps to collect receivables quicker.
2.2.2 - Fixed asset turnover ratio
= Sales/Net fixed asset

Years 2017 2018 2019 2020 2021
RM’000 RM’000 RM’000 RM’000 RM’000
Sales 196,282 199,985 214,087 254,703 251,770

Fixed Asset 236,463 249,827 252,185 254,185 246,047
0.83 x 0.80 x 0.85 x 1.0 x 1.02 x
The fixed asset turnover ratio (FAT) is, in general, used by analysts to measure
operating performance. This efficiency ratio compares net sales (income statement)
to fixed assets (balance sheet) and measures a company's ability to generate net sales
from its fixed-asset investments, namely property, plant, and equipment (PP&E).
The ratio of Kawan Food has increased from 0.83 times to 1.02 times from 2017 to
2021 indicating that it is using its fixed assets at least as intensively and seems to
have about the right amount of fixed assets relative to its sales.
2.2.3 - Total asset turnover ratio
= Sales/Total asset
Years 2017 2018 2019 2020 2021

RM’000 RM’000 RM’000 RM’000 RM’000
Sales 196,282 199,985 214,087 254,703 251,770

Total Asset 326,602 340,105 341,682 360,623 384,733
0.60 x 0.59 x 0.63 x 0.71 x 0.65 x
The asset turnover ratio measures the value of a company's sales or revenues relative
to the value of its assets. The asset turnover ratio can be used as an indicator of the
efficiency with which a company is using its assets to generate revenue.
The higher the asset turnover ratio, the more efficient a company is at generating
revenue from its assets. Conversely, if a company has a low asset turnover ratio, it
indicates it is not efficiently using its assets to generate sales. Therefore , in the case
of Kawan Food, the asset turnover ratio indicates that it is not generating enough
sales given its total asset from 2017 until 2018 and also from 2020 to 2021.
2.3 - DEBT MANAGEMENT RATIO
2.3.1 - Debt ratio

= Total Debt/Total Asset
Years 2017 2018 2019 2020 2021
RM’000 RM’000 RM’000 RM’000 RM’000
Total Debt 17,802 18,640 16,742 14,956 15,731

Total 326,602 340,105 341,682 360,623 384,733
Assets
5.45% 5.43% 4.90% 4.15% 4.09%
The debt ratio for a given company reveals whether or not it has loans and, if so,
how its credit financing compares to its assets. It is calculated by dividing total
liabilities by total assets, with higher debt ratios indicating higher degrees of debt
financing. Debt ratios can be used to describe the financial health of individuals,
businesses, or governments. In the case of Kawan Food Sdn Bhd, from 2017 to
2021, the debt ratio decreasing each year raises a green flag and this will not make it
relatively costly for the company to borrow additional funds without first raising
more equity more. Creditors will not be reluctant to lend the company more money.
2.3.2- TIE
= EBIT / Interest Expenses
Years 2017 2018 2019 2020 2021
RM’000 RM’000 RM’000 RM’000 RM’000
EBIT 36,052 29,244 15,354 32,015 36,656
Interest
0 0 1,024 659 658
Expenses
0 0 14.99x 48.58x 55.70x
Times interest earned ratio measures a company's ability to continue to service its
debt. It is an indicator to tell if a company is running into financial trouble. A high
ratio means that a company is able to meet its interest obligations because earnings
are significantly greater than annual interest obligations. Times-interest-earned ratio
for Kawan Food Bhd indicates that the company will not face difficulties if it
attempted to borrow additional money because the interest covered for each year
keeps increasing.
2.4 - PROFITABILITY RATIO
2.4.1- Operating Margin
= EBIT / Sales
Years 2017 2018 2019 2020 2021
RM’000 RM’000 RM’000 RM’000 RM’000
EBIT 36,052 29,244 15,354 32,015 36,656
Sales 196,282 199,985 214,087 254,703 251,770
18.37% 14.62% 7.17% 12.57% 14.56%
The operating margin measures how much profit a company makes on a dollar of
sales after paying for variable costs of production, such as wages and raw materials,
but before paying interest or tax. It is calculated by dividing a company’s operating
income by its net sales. The operating margin of Kawan Food Bhd decreases from
2017 to 2019 which indicates that the company’s operating costs are too high and it
increases from 2020 till 2021 which illustrates the company is getting better and
efficient in its operations and is good at turning sales into profits.Thus, in the year
2021, for every RM100 sales, the company is making RM14.56 EBIT.
2.4.2 - Profit Margin
=Net Income / Sales
Years 2017 2018 2019 2020 2021
RM’000 RM’000 RM’000 RM’000 RM’000
Net Income 29,106 22,807 12,014 27,652 31,785
Sales 196,282 199,985 214,087 254,703 251,770
14.83% 11.40% 5.61% 10.86% 12.62%
Profit margin is one of the commonly used profitability ratios to gauge the degree
to which a company or a business activity makes money. It represents what
percentage of sales has turned into profits. In the year 2017,for every RM100, the
company was making RM14.83 profit. The profit of the company slightly decreases
until 2019 due to heavy use of debt. This might be also due to the company’s high
operating costs. In the year 2020, the profit margin again increased, for every
RM100 , the company was making RM12.62 profit.
2.4.3 - Basic earning Power
=EBIT / Total Asset
Years 2017 2018 2019 2020 2021
RM’000 RM’000 RM’000 RM’000 RM’000
EBIT 36,052 29,244 15,354 32,015 36,656
Total Asset 326,602 340,105 341,682 360,623 384,733
11.04% 8.6% 4.5% 8.8% 9.53%
The Basic Earning Power Ratio (BEP) is a measure of the company’s efficiency at
producing earnings relative to its assets. The basic earning power ratio formula is
simple and takes Earnings Before Interest and Taxes (EBIT) and divides it by Total
Assets. The BEP ratio can demonstrate the business’s ability to generate adequate
profits over the long term by reviewing several years to assess the company’s
efficiency and earning trends. Simply put, BEP is a quick health check on the
company’s profitability. In the year 2017, for every RM100 asset, the EBIT of
Kawan Food Sdn Bhd is RM11.04 but it drops until the year 2019 because of its low
turnover ratios and poor profit margin on sales. Eventually, in the year 2021, for
every RM100 asset, the EBIT of Kawan Food Sdn Bhd increased to RM9.53.
2.4.4 - Return on Assets (ROA)
= Net Income / Total Assets
Years 2017 2018 2019 2020 2021
RM’000 RM’000 RM’000 RM’000 RM’000
Net Income 29,106 22,807 12,014 27,652 31,785
Total
326,602 340,105 341,682 360,623 384,733
Assets
8.91% 6.7% 3.51% 7.67% 8.26%
The asset turnover ratio measures the efficiency of a company's assets in generating
revenue or sales. It compares the dollar amount of sales (revenues) to its total assets
as an annualized percentage. Thus, to calculate the asset turnover ratio, divide net
sales or revenue by the average total assets. From 2017 to 2020, asset turnover ratio
of Kawan Food Sdn Bhd indicates that the company is not using its assets efficiently
and may have internal problems because it decreases. In the year 2021, its ratio
increases a little, for every RM100 assets, the return on the assets was RM8.26.
2.4.5 - Return on Equity (ROE)
= Net Income / Total Equity
Years 2017 2018 2019 2020 2021
RM’000 RM’000 RM’000 RM’000 RM’000
Net Income 29,106 22,807 12,014 27,652 31,785
Total 179,760 + 179,760 + 179,760 + 179,760 + 179,760 +

Equity 119,055 132,874 136,076 155,106 177,220
15.18% 7.3% 3.8% 8.26% 8.9%
Return on equity (ROE) is a measure of financial performance calculated by

dividing net income by shareholders' equity. Because shareholders' equity is equal to
a company’s assets minus its debt, ROE is considered the return on net assets. ROE
is considered a gauge of a corporation's profitability and how efficient it is in
generating profits. The financial performance of Kawan Food at its best in the year
2017 because of the ROE was higer compared to other years, the reason could be
due to the company's management being more efficient at generating income and
growth from its equity financing.
2.5 - MARKET VALUE
2.5.1- P/E
= Price / Earnings per share
Years 2017 2018 2019 2020 2021
RM’000 RM’000 RM’000 RM’000 RM’000
Price 2.94 1.91 1.39 2.08 1.64
Earnings per
8.10 6.34 3.36 7.79 8.84
share
0.36x 0.30x 0.41x 0.27x 0.19x
The price-to-earnings ratio is the ratio for valuing a company that measures its
current share price relative to its earnings per share (EPS). The price-to-earnings
ratio is also sometimes known as the price multiple or the earnings multiple.P/E
ratios are used by investors and analysts to determine the relative value of a
company's shares in an apples-to-apples comparison. It can also be used to compare
a company against its own historical record or to compare aggregate markets against
one another or over time. The P/E ratio of Kawan Food was relatively high in the
year 2019 with strong growth prospects and little risk.
2.5.2 - M/B
= Market Price / Book value per share
Years 2017 2018 2019 2020 2021
RM’000 RM’000 RM’000 RM’000 RM’000
Market
2.94 1.91 1.39 2.08 1.64
Price
Book value
103,039 163,682 227,220 160,993 217,670
per share
2.85x 1.17x 6.12x 1.29x 7.53x
The book-to-market ratio compares a company's book value to its market value. The
book value is the value of assets minus the value of the liabilities. The market value
of a company is the market price of one of its shares multiplied by the number of
shares outstanding. The book-to-market ratio is a useful indicator for investors who
need to assess the value of a company. The M/B ratios of Kawan Food typically
exceeded 1.0 which means that investors are willing to pay more for stocks than the
accounting book values of the stocks.
3.0 - FINANCIAL PERFORMANCES ANALYSIS OF
F&N SDN BHD
Current assets of the company are higher compared to the current liabilities thus the
current ratio is more than 1 and it increases every year from 2018 to 2022. It is a
desirable situation to be in since it shows that the company is highly capable of
repaying its short term due loan within one year due. The primary reason for this
increase is built-up of cash and cash equivalents and other assets from 2019 to 2022.
From 2018 to 2022, the quick ratio has increased from 1.3x to 3.9x which means the
company proportion of a business's current liabilities that can meet with cash and
assets that can be readily converted to cash are high. A quick ratio that is too high
could mean that a business is sitting on too much cash and not investing or growing
enough but giving the company cash lower in 2022 compared to 2018. This also
shows that the company could pay off its current liabilities without selling any
long-term assets
The inventory turnover ratio calculates how frequently inventory is bought and sold
over the course of the complete fiscal year. This ratio is crucial for the business and
the investors because it shows how well the company converts inventory purchases
into final sales. From the decreasing ratio from 2018 to 2022, it shows that the
company holds too much inventory even though the sales is higher. Faster product
sales result in more efficient inventory management. It is therefore necessary to have
a proper plan in place for increasing inventory turnover ratio by focusing on
improved sales or reducing the blockage of cash on a stock.
The DSO of the company had increased for the previous 5 years. The economic
condition due to the pandemic might be the factor that their creditors are taking more
times to pay their debt. A high DSO signifies that the company is taking longer to
collect payments from creditors, whereas a low DSO demonstrates frequent and
prompt payment collection. DSO can be utilised to some extent to evaluate the
creditworthiness of the creditors; for example, if the creditor delays the collection,
one could infer that they are under financial hardship. This consequently affects the
company's cash flow. A DSO of more than 45 days is regarded as high in a typical
circumstance.
The total fixed asset turnover is getting lower each year means the efficiency the
company uses its resources overall is decreasing. The fixed asset turnover ratio
measures the company’s efficiency in utilizing fixed assets to generate revenue. If
the ratio in 2018 is 2.35 , it indicates that the company utilizes its fixed assets
efficiently. The return on capital would likely be higher in such cases, and it is taken
positively by the investors and lenders. Meanwhile in year 2022 the ratio is 2.00. Not
much difference so it is safe to say that the fixed assets are well utilised. It may have
made a significant investment if the ratio is excessively high or low. It might be in
the process of acquiring new assets, an expansion is already under way, or full
capacity is not yet operational.
Because the denominator in the equation is larger while the numerator remains the
same, a company's asset turnover ratio will be lower than its fixed asset turnover
ratio. Conceptually speaking, it also makes sense that the difference between sales
and total assets is greater than the difference between sales and a subset of assets.
Because they want to have the best understanding of the performance of their capital
investments, manufacturing companies frequently prefer the fixed asset turnover
ratio over the asset turnover ratio. Companies with fewer fixed assets, like retailers,
might be less concerned with the fixed assest turnover ratio than they are with the
utilization of other assets like inventory.
From year 2018 to 2022, it shows that debt ratio under control. If the ratio greater
than 1 then considerable amount of company asset are funded by debt which mean
the company has more liabilites than asset. Year 2021 is the most good year of the
company’s debt management by 0.22% and from the year 2018 which s 0.31% it has
gotten better. However, the ratio has increased again to 0.29% on the year 2022.
Overall, the company ratio below than 1 that a greater portion of company asset is
funded by equity.
The company that has a times interest earned ratio greater than 2.5 is considered an
acceptable risk.meanwhile if a company less than 2.5 are considered a much higher
risk for bankruptcy or default. For year 2018, the company has to pay RM27.15 for
each tax paid. For year 2019, the company has to pay RM117.00 for each tax paid.
For year 2020, the company has to pay RM107.64 for each tax paid. For year 2020,
the company has to pay RM150.81 for each tax paid. For year 2022, the company
has to pay RM78.24 for each tax paid.
From 2018 until 2022 there is slightly got some changes. Operating ratio shows how
efficient a company management is at keeping cost low while generating revenue or
sales. the smaller the ratio, the more efficient the company is at generating revenue
vs expenses. In year 2018, for every RM100 sales, the company is making RM10.92
EBIT. In year 2019, for every RM100 sales, the company is making RM13.07 EBIT.
In year 2020, for every RM100 sales, the company is making RM13.11 EBIT.
In year 2021, for every RM100 sales, the company is making RM11.61 EBIT. In
year 2022 for every RM100 sales, the company is making RM10.16 EBIT.
Net profit margin is typically expressed as a percentage but also can be presented in
decimal form. it just illustrates how much money in revenue collected by a company
convert into profit. . In year 2018, for every RM100 sales, the company is making
RM35.70 profit. In year 2019, for every RM100 sales, the company is making
RM28.91 profit. In year 2022 for every RM100 sales, the company is making
RM26.27 profit.
It is normally refers to a financial ratio that indicates how profitable a company is in
relation to total assets. most of expert use ROA to determine on how efficiently a
company uses its asset to generate profit. a higher ROA means the company more
productive and efficient to generate more profit while lower ROA indicates that
some part need improvement. In year 2018, for every RM100 asset, the company is
making RM41.00 return. In year 2019, for every RM100 asset, the company is
making RM36.00 profit. In year 2020, for every RM100 asset, the company is
making RM35.00 profit. In year 2021, for every RM100 asset, the company is
making RM33.00 profit. In year 2022 for every RM100 asset, the company is
making RM28.00 profit.
This is a measure of financial performance calculated by dividing net income by the
shareholde equity. The higher the ROE, the more efficient it company management
generating growth and income. ROE vary based on industry or sector in which
company operates. In year 2018, for every RM100 equity, the company is making
RM60.00 net profit. In year 2019, for every RM100 equity, the company is making
RM42.00 net profit. In year 2022 for every RM100 equity, the company is making
RM39.00 net profit.
Another ultitude investment ratios that you got as an investor. The earning power is
just one of multitude investment ratios that you got .Evaluating a company financial
health and stock profit potential. The BEP can demonstrate the business ability to
generate adequate profit over the long term by reviewing the company earning
trends. In year 2018, for every RM100 asset, the company got EBIT RM 12.64. In
year 2019, for every RM100 asset, the company got EBIT RM 15.21. In year 2020,
for every RM100 asset, the company got EBIT RM 14.86. In year 2021, for every
RM100 asset, the company got EBIT RM 13.20. In year 2022 for every RM100
asset the company got EBIT RM 10.83. BEP getting better between year 2018 until
2020 and drop from 2021 until 2022.
Used by the investor and analyst to determine the relative value of comapny share.
A higher ratio mean that a company stock overvalued or investor expect. The P/E
can be benchmarked against other stock in same industry or against the broader
market. For the year 2018, investor paid RM 0.33 for every RM 1 earning. For the
year 2019, investor paid RM 0.30 for every RM 1 earning. For the year 2020,
investor paid RM 0.30 for every RM 1 earning. For the year 2021, investor paid RM
0.27 for every RM 1 earning. For the year 2022, investor paid RM 0.21 for every
RM 1 earning. The P/E score decrease every year starting from year 2020.
It has been used to measure market valuation of a company relative to its book
value. the market value of a equity is typically higher than the book value of a
company stock. the price to book ratio is used by value investor to identify potential
investment. For the year 2018, investor paid RM 0.01 for every RM 1 book equity.
For the year 2019, investor paid RM 0.05 for every RM 1 book equity. For the year
2020, investor paid RM 0.04 for every RM 1 book equity. For the year 2021,
investor paid RM 0.04 for every RM 1 book equity. For the year 2022, investor paid
RM 0.06 for every RM 1 book equity. The M/B score increase every year starting
from year 2020.
4.0 - BENCHMARK / PEER ANALYSIS BETWEEN
F&N SDN BHD AND KAWAN FOOD SDN BHD
4.1 - LIQUIDITY RATIO
4.1.1 - Current Ratio
A healthy current ratio is normally between 1.5 and 2, but it occasionally depends on
the sector of the economy in which the business operates. The company can meet its
short-term obligations if the current ratio is strong, or anyplace above 1. They are
better equipped to pay off debts if the ratio is larger. Hence, from this statement it is
shown that KAWAN FOOD BERHAD has a better and strong ability to pay off their
debts to the creditor. Although the current ratio of F&N increases from year 2018 to
2022, it’s ratio are far left behind by KAWAN FOOD BERHAD. KAWAN FOOD
BERHAD has been making tremendous strong ability through the past years to meet
it’s obligations to pay off it’s debt.
4.1.2 - Quick Ratio

Companies are more prone to maintain larger quick ratios when the business
environment is unclear. The quick ratio should be kept at relatively low levels in
situations when cash flows are predictable and constant. Even the highest ratio of
F&N can overcome the lowest quick ratio of KAWAN FOOD BERHAD. From these
point of view, it could be that KAWAN FOOD BERHAD is investing too much that
it does not have that much inventory to be hold. The optimal standard quick ratio is
1, which indicates that the business is unable to cover its immediate current
obligations and could result in technical solvency. In order to ensure that the ratio is
above level 1:1, one should take action to lower the investment in the inventory. In
addition, this quick ratio shows us the company’s ability to pay off short-term
liabilities using receivables and cash & cash equivalents is better with KAWAN
FOOD BERHAD.
4.2 - ASSET MANAGEMENT RATIO
4.2.1 - Day Sales Outstanding
Based on the analysis among Account receivable and Daily average sales , we can
conclude that both companies having same analyze report..A high DSO number
suggests that a company is experiencing delays in receiving payments, which can
result in a cash flow problem .A low DSO indicates that the company is getting its
payments quickly. That money can be put back into the business to good effect.
Bases on the analysis on DSO we can conclude that for company Fraser & Neave
Holdings Bhd (F&N) have improving on the collection starting from year 2019 to
2021 as the the company getting its payment within 54days on 2019 compared to
2018 it delays to 57 days and on 2021 the collection period reduce more into 45days
but unfortunately the collection get delayed to 71days on 2022. Furthermore , the
company Kawan Food Berhad face the same issue as on 2018 the collection period
is about 162days way more better than 2017 about 165days to get the payments and
on 2019 and 2020 the collection period reduce more to 151days to 150 days but at
last the payment get delayed again on 2021 about to 198days.
4.2.2 - Total fixed asset turnover ratio
Based on the analysis of sales over net fixed assets , we can conclude that Kawan
Food Berhad company’s efficiency in utilizing fixed assets to generate revenue
greater than Fraser & Neave Holdings Bhd (F&N) . For the company Fraser &
Neave Holdings Bhd (F&N) in 2018 the ratio about 2.35times which the company
utilizes its fixed assets efficiently but from the year 2019 to 2020 the use of fixed
assets decrease siginificantly from 2.32times to 2.29 times and they utilized it back
on 2021 about 2.34 times and its flops on 2022 about 2.0 times. Meanwhile for
company Kawan Food Berhad they utilize its fixed assets thoroughly about
0.83times to 1.02 times from 2017-2021 . A higher turnover ratio is indicative of
greater efficiency in managing fixed-asset investments, but there is not an exact
number or range that dictates whether a company has been efficient at generating
revenue from such investments
4.2.3 Total Asset Turnover
Based on the analysis on sales over total assets , we can conclude that Fraser &
Neave Holdings Bhd (F&N) efficiently using its assets to generate revenue
compared to Kawan Food Berhad. It clearly shows in the analysis of total turnover
ratio of Fraser & Neave Holdings Bhd (F&N) about 1.16 times on year 2018 and
2019 the turnover of assets to generate revenues but the turnover decrease
significantly about 1.13 times to 0.99 times on year 2020 and 2021.Meanwhile , the
ratio surprisingly increased about 1.23 times on 2022 which shows their concerned
with assets to generate revenues whereas Kawan Food Berhad, the asset turnover
ratio indicates that it is not generating enough sales given its total asset from 2017
until 2018 about 0.60times decreased to 0.59 times and also from 2020 to 2021
decreased drastically about 0.71times to 0.65times. Conversely, if a company has a
low asset turnover ratio, it indicates it is not efficiently using its assets to generate
sales.
4.3 - DEBT MANAGEMENT RATIO
4.3.1 - Debt Ratio
Simply from the results of total debt and total assets , we can try to conclude that
Kawan Food Berhad performed much better than Fraser & Neave Holdings Bhd
(F&N) . It is because Kawan Food Berhad company has less reliance on debt for
asset formation and is less risky compared to Fraser & Neave Holdings Bhd (F&N) .
Also, from the analysis we can conclude that F&N company assets are funded by
debt which means the company has more liabilities than assets. Consequently, if we
look at the current ratio for both companies, it turns out that Kawan Food Berhad`s
debt management is better than F&N. By data analysis , F&N company in the year
2021 is the best year of the company’s debt management by 0.22% and from the
year 2018 which is 0.31% it has gotten better. However, the ratio has increased again
to 0.29% on the year 2022 which clearly shows the poor management of debt and
they have more liabilities than asset whereas Kawan Food Berhad from 2017 to
2021, the debt ratio decreasing each year from 5.45% in 2017 to 4.09% in 2021
raises a green flag and this will not make it relatively costly for the company to
borrow additional funds without first raising more equity . The management team at
Kawan Food Berhad was more effective at managing their debt with sufficient
funds. The strategies adopted by Kawan Food Berhad were much more successful
than those of F&N, and it is Kawan Food Berhad which can make a good reputation
to creditors for more business.
4.3.2 - Times Interest Earned
Based on the analysis of Earning Before Interest Taxes and Interest expenses , we
can try to conclude that Kawan Food Berhad company`s performance much better
than Fraser & Neave Holdings Bhd (F&N). It is because Kawan Food Berhad
company is able to meet its interest obligations because earnings are significantly
greater than annual interest compared to Fraser & Neave Holdings Bhd (F&N) .
Also, the from the analysis we can conclude that F&N company`s ability to continue
to service its debt greater than Fraser & Neave Holdings Bhd (F&N). Furthermore if
we scrutinize at the times interest earned for both companies, it clearly shows that
Kawan Food Berhad has an undesirably low level of leverage compared to Fraser &
Neave Holdings Bhd (F&N). Kawan Food Berhad on 2017-2018 have no any
interest expenses but surprisingly from year 2019 to 2021 the ratio increased
drastically from 14.99 times to 55.70 times interest charges with its pretax
earnings.This indicates that Kawan Food Berhad will not face difficulties if it
attempted to borrow additional money because of the drastic increase on yearly
interest. The Fraser & Neave Holdings Bhd (F&N) company considered an
acceptable because the data shows on 2018-2022 increased 27.15 times to 150.81
times interest charges from its earnings but unfortunately the ratio flop until 78.24
times in 2022 this can clearly advise the lower times interest earned ratio means
fewer earnings are available to meet interest payments
4.4 - PROFITABILITY RATIO
4.4.1 - Operating Margin
The operating ratio shows the efficiency of a company's management by comparing

the total operating expense of a company to net sales. An operating ratio that is
decreasing is viewed as a positive sign, as it indicates that operating expenses are
becoming an increasingly smaller percentage of net sales. For KAWAN FOOD
BERHAD, the operating margin are decreasing each year meanwhile for F&N it is
not stable. Between these two companies, t is safe to say that it is doing a good and
better job in managing it’s company expenses. It is because a higher ratio would
indicate that expenses are more than the company's ability to generate sufficient
revenue and may be considered inefficient.
4.4.2 - Net profit ratio
The net profit ratio indicates how much net income a company makes with total
sales achieved. To compare between the both companies, it is shown that F&N has a
higher net profit ratio compare to KAWAN FOOD BERHAD. The highest ratio for
KAWAN FOOD BERHAD is during year 2017-14.83 % meanwhile the highest for
F&NBH is during the year 2018 – 35.70%. A corporation is more effective at
converting sales into actual profit if its net profit margin is higher thus making
F&NB is more performing in it’s selling point. The success of a corporation in
making a profit on each ringgit of sales is measured by its net ratio. All elements that
affect profitability, whether or not they are managed by management, are included in
net ratio. A corporation is more adept at controlling costs the higher the ratio.
4.4.3 - BEP ratio
The purpose of BEP is to determine how effectively a firm uses its assets to generate
income. The BEP ratio is simply EBIT divided by total assets . The higher the BEP
ratio, the more effective a company is at generating income from its assets. From
both companies calculation of basic earning power, it is known that F&N has a
higher BEP ratio compared to KAWAN FOOD BERHAD. However, the trend shows
that for F&N BEP ratio increases during 2018 to 2019 from 12.64% to 15.21% but
slowly decreasing from year 2020 to 2022 For KAWAN FOOD BERHAD, the ratio
has been decreasing from 2017 to 2019, 11.04 % to 4.5 % but increases during the
year 2020 and 2021 from 8.8% to 9.53%. The increases are maybe due to the results
from the increased profit on operating activities, This shows that assets profitability
of the F&N has a greater assets profitability of the assets.
4.4.4 - ROA
ROA for the year 2018 of F&N is 41 % and KAWAN FOOD BERHAD for 2017 is
11.04 %. Year 2019 F&N is 36% and 2018 KAWAN FOOD BERHAD is 8.6 %.
Year 2020 ROA is 35 % meanwhile KAWAN FOOD BERHAD for 2019 is 4.5%.
2021 ROA for F&N is 33 % and ROA for KAWAN FOOD BERHAD 2020 is
7.67%. For the year of 2022 ROA F&N is 28 % and ROA 2021 for KAWAN FOOD
BERHAD is 8.26%. It shows that the ROA for F&N business decrease year by year
compare to KAWAN FOOD BERHAD. ROA FOR KAWAN FOOD BERHAD start
to decrease from the year 2017 until 2019 and start to increase back from year 2020
until 2021. Its show that the company more productive and efficient to generate
more profit.
4.4.5 - ROE
The higher the ROE the more efficient company management generate growth and
income. ROE for the year 2018 of F&N is 60 % and KAWAN FOOD BERHAD for
2017 is 15.18 %. Year 2019 F&N is 50% and 2018 KAWAN FOOD BERHAD is 7.3
%. Year 2020 ROE is 46 % meanwhile KAWAN FOOD BERHAD for 2019 is 3.8
%. 2021 ROE for F&N is 42 % and ROE for KAWAN FOOD BERHAD 2020 is
8.26 %. For the year of 2022 ROE F&N is 39 % and ROE 2021 for KAWAN FOOD
BERHAD is 8.9 %. It shows that the ROE for both F&N and KAWAN FOOD
BERHAD business decrease year by year from 2017 until 2022. Company not
making much profit during the years perhaps because of management not efficient or
got some supplier issues or etc.
4.5 - MARKET VALUE RATIO
4.5.1 - P/E
Based on the analysis among stock price and earning per share, we can conclude that
both companies having same analyze report . A high P/E ratio could mean that a
company's stock is overvalued, or that investors are expecting high growth rates in
the future. As we can see from the price-to earning ratio , we can look that for
company Kawan Food Berhad based on stock valued on 2017 about 0.36 times
earning per share but the turnover dropped on 2018 and peak again on 2019 about
0.41times but unfortunately the stock value dropped drastically from 0.27times to
0.19times in the year 2020 to 2021. Meanwhile ,Fraser & Neave Holdings Bhd
(F&N) , For the year 2018, investor paid RM 0.33 for every RM 1 earning. For the
year 2019, investor paid RM 0.30 for every RM 1 earning. For the year 2020,
investor paid RM 0.30 for every RM 1 earning. For the year 2021, investor paid RM
0.27 for every RM 1 earning. For the year 2022, investor paid RM 0.21 for every
RM 1 earning. The P/E score decrease every year starting from year 2020.
4.5.2 - M/B
The price-to-book (P/B) ratio measures the market's valuation of a company relative
to its book value.The market value of equity is typically higher than the book value
of a company's stock.Based on the analysis among market price per share over book
value per share we can conclude that Fraser & Neave Holdings Bhd (F&N)
considered having solid investments by value investors compared to Kawan Food
Berhad . It clearly shows in the analysis for F&N on year for the year 2018, investor
paid RM 0.01 for every RM 1 book equity. For the year 2019, investor paid RM 0.05
for every RM 1 book equity. For the year 2020, investor paid RM 0.04 for every RM
1 book equity. For the year 2021, investor paid RM 0.04 for every RM 1 book
equity. For the year 2022, investor paid RM 0.06 for every RM 1 book equity. The
M/B score increase every year starting from year 2020. Meanwhile the Kawan Food
Berhad P/B ratios more than 1.0 are typically considered not a solid investments by
value investors.
LAMPIRAN
KAWAN Food Berhad 640445-V Annual Report 2017 21
Management Discussion and Analysis | continued
FY2013 FY2014 FY2015 FY2016 FY2017
Statement of Profit or Loss (RM’000)
Revenue 126,426 149,524 165,773 186,948 196,282

Profit Before Tax 20,645 26,285 40,135 41,540 36,053
Taxation 4,484 5,356 8,100 8,558 6,946
Profit After Tax 16,161 20,929 32,035 32,982 29,107

Non-Controlling Interest 14 (21) – – –
Dividends 2,160 6,496 3,657 15,197 6,741
Bonus Issues – 28,982 – – 7,405
Retained Earnings (opening) 58,487 72,502 57,932 86,310 104,095
Retained Earnings (closing) 72,502 57,932 86,310 104,095 119,056
FY2013 FY2014 FY2015 FY2016 FY2017
Statement of Financial Position (RM’000)
Issued and Paid-up Share Capital 60,000 91,175 104,839 134,820 179,760
Share Premium – – 11,751 37,535 –
Non-Distributable Reserve 3,337 5,318 13,906 14,984 9,984
Retained Earnings 72,502 57,932 86,310 104,095 119,056
Shareholders’ Fund 135,839 154,425 216,806 291,434 308,800

Non-Controlling Interest (26) (5) – – –
Deferred Taxation 3,054 863 59 291 1,199
Long-Term Borrowings 2,094 5,842 25,358 20,226 16,603
140,961 161,125 242,223 311,951 326,602
Property, Plant and Equipment,

Investment Properties and
Prepaid Lease Payments 83,766 101,020 158,684 207,565 236,463
Deferred Taxation 1,598 27 188 278 407
Net Current Assets 55,597 60,078 83,351 104,108 89,732
140,961 161,125 242,223 311,951 326,602

22 KAWAN Food Berhad 640445-V Annual Report 2017
Management Discussion and Analysis | continued
FY2013 FY2014 FY2015 FY2016 FY2017
Financial Ratio
Revenue Growth (%) 14.70 18.27 10.87 12.77 4.99

Current Ratio (times) 3.98 3.37 3.66 3.60 3.23
Cash Ratio (times) 1.93 1.46 2.01 2.01 1.56
Total Borrowings/Equity (%) 2.26 4.45 12.19 8.18 7.89
Long-term Borrowings/Equity (%) 1.54 3.78 11.70 6.94 5.38
Basic Earnings Per Share (sen) *5.89 *7.70 *11.12 *9.17 8.10
Dividend Per Share (sen) 1.80 5.40 2.00 6.00 2.50
Net Assets Per Share Attributable
to Shareholders of the Company (RM) 1.13 0.85 1.03 1.08 0.86
Share Price – High (RM) 1.39 2.75 4.00 4.00 5.07
Share Price – Low (RM) 0.77 1.30 1.40 3.00 2.90
Share Price at 31 December 1.39 1.40 3.59 3.80 2.94
Company Market Capitalisation (RM’000) 166,800 255,289 752,742 1,024,631 1,056,988
*Restated due to adjustments made for bonus issue.
FY2013 FY2014 FY2015 FY2016 FY2017
Five Year Dividend Payment as % of Profit After Tax
Profit After Tax (RM’000) 16,161 20,929 32,035 32,982 29,107

Dividend Paid (RM’000) 2,160 6,496 3,657 15,197 6,741
Dividend Payment as % of Profit after Tax 13% 31% 11% 46% 23%
The Group’s revenue increased by 5% to RM196.3 million in FY2017. The increase in revenue was largely attributed
to higher sales orders from our major customers in Malaysia, France and Middle East.
In term of revenue contribution by geographical segments, Malaysia remains the largest market for Kawan,
generating 38.9% of the Group turnover, followed by North America (29.9%) and Asia (17.5%).
The Group’s profit before tax (“PBT”) in FY2017 dropped by 13.2% to RM36.1 million. The decrease in PBT was
mainly attributed to higher input costs and higher foreign currency exchange losses incurred in FY2017. In FY2017,
Kawan incurred foreign currency losses of RM2.6 million whereas in FY2016, Kawan recorded foreign currency gains
of RM1.9 million.
Capital Expenditure
During the year under review, the Group incurred capital expenditures amounting to RM32.0 million on acquisition
of property, plant and equipment for the Pulau Indah expansion project. This was funded through internally
generated funds.
Dividend
In FY2017, the Company declared and paid an interim single tier dividend of 2.5 sen per ordinary share amounting
to RM6.7 million.
On 1 March 2018, the Company declared an interim single tier dividend of 2.5 sen per ordinary share amounting to
RM9.0 million in respect of the financial year ending 31 December 2018. The dividend was paid on 30 March 2018.
Management Discussion
and Analysis (continued)
Statement of Profit and Loss (RM’000)
2014 2015 2016 2017 2018
Revenue 149,524 165,773 186,948 196,282 199,985

Taxation 5,356 8,100 8,558 6,946 6,437
Profit After Tax 20,929 32,035 32,982 29,106 22,807

Non-Controlling Interest (21) - - - -
Dividends 6,496 3,657 15,197 6,741 8,988
Bonus Issues 28,982 - - 7,405 -
Statement of Financial Position (RM’000)
2014 2015 2016 2017 2018
Issued and Paid-up Share Capital 91,175 104,839 134,820 179,760 179,760
Share Premium - 11,751 37,535 - -

Non-Controlling Interest (5) - - - -
Deferred Taxation 863 59 291 1,199 5,660
Long Term Borrowings 5,842 25,358 20,226 16,603 12,980
161,125 242,223 311,950 326,602 340,105
Property, Plant and Equipment,

Investment Properties and
Prepaid Lease Payments 101,020 158,684 207,565 236,463 249,827
Deferred Taxation 27 188 278 407 476
161,125 242,223 311,950 326,602 340,105
>> 20 • KAWAN FOOD BERHAD

Management Discussion
and Analysis (continued)
Financial Ratio
2014 2015 2016 2017 2018
Revenue growth (%) 18.27 10.87 12.77 4.99 1.89

Current ratio (times) 3.37 3.66 3.60 3.17 3.44
Cash ratio (times) 1.46 2.01 2.01 1.52 1.07
P/E ratio (times) 18.18 32.28 41.44 36.30 30.13
Total borrowings/Equity (%) 4.45 12.19 8.18 7.89 5.16
Long-term borrowings/Equity (%) 3.78 11.70 6.94 5.38 4.04
Basic earnings per share (sen) *7.70 *11.12 *9.17 8.10 6.34
Dividend per share (sen) 5.40 2.00 6.00 2.50 2.50
Net assets per share attributable to
shareholders of the Company (RM) 0.85 1.03 1.08 0.86 0.89
Share price - High (RM) 2.75 4.00 4.00 5.07 3.08
Share price - Low (RM) 1.30 1.40 3.00 2.90 1.81
Share price at 31 December 1.40 3.59 3.80 2.94 1.91
Company market capitalisation (RM’000) 255,289 752,742 1,024,631 1,056,988 686,683
* restated due to adjustments for bonus issue
Five Year Dividend Payment as % of Profit After Tax
2014 2015 2016 2017 2018

Profit after tax (RM’000) 20,929 32,035 32,982 29,106 22,807
Dividend paid (RM’000) 6,496 3,657 15,197 6,741 8,988
Dividend payment as % of profit after tax 31% 11% 46% 23% 39%
The Group revenue increased by 1.9% to RM200.0m in FY18. Capital Expenditure

The increase in revenue was largely attributed to higher sales
orders from our major customers in Malaysia. During the year under review, the Group incurred capital
expenditures amounting to RM21.3m on acquisition of
In term of revenue contribution by geographical segments, property, plant and equipment for the Pulau Indah expansion
Malaysia remains the largest market for Kawan, generating project. This was funded through internally generated funds.
40.6% of the Group turnover, followed by North America
(26.6%) and Asia (19.1%). Dividend
The Group PBT in FY18 dropped 18.9% to RM29.2m. The In FY18, the Company declared and paid an interim single
decrease in PBT was mainly attributed to start-up costs and tier dividend of 2.5 sen per ordinary share amounting to
unfavourable exchange rate. RM8.99m.
On 4 March 2019, the Company declared an interim single tier

dividend of 2.5 sen per ordinary share amounting to RM8.99m
in respect of the financial year ending 31 December 2019. The
dividend was paid on 29 March 2019.
Annual Report 2018 • << 21

KAWAN FOOD BERHAD
16 ANNUAL REPORT 2019
Management Discussion and Analysis

(cont’d)
STATEMENT OF PROFIT AND LOSS (RM’000)
2015 2016 2017 2018 2019

Revenue 165,773 186,948 196,282 199,985 214,087
Taxation 8,100 8,558 6,946 6,437 3,340
Profit After Tax 32,035 32,982 29,106 22,807 12,014
Non-Controlling Interests - - - - (176)
Dividends 3,657 15,197 6,741 8,988 8,988
Bonus Issues - - 7,405 - -
STATEMENT OF FINANCIAL POSITION (RM’000)
2015 2016 2017 2018 2019

Issued and Paid-up Share 104,839 134,820 179,760 179,760 179,760
Capital
Share Premium 11,751 37,535 - - -
Non-Controlling Interests - - - - 1,024
Deferred Taxation 59 291 1,199 5,660 7,384
242,223 311,951 326,602 340,105 341,682
Property, Plant and 158,684 207,565 236,463 249,827 252,185

Equipment, Investment
Properties, Right-of-use
assets and Prepaid Lease
Payments
242,223 311,951 326,602 340,105 341,682

KAWAN FOOD BERHAD
ANNUAL REPORT 2019 17

(cont’d)
FINANCIAL RATIOS
2015 2016 2017 2018 2019

Revenue growth (%) 10.87 12.77 4.99 1.89 7.05
Cash ratio (times) 2.01 2.01 1.52 1.07 1.18
P/E ratio (times) 32.28 41.44 36.30 30.13 41.00
Long-term borrowings/ 11.70 6.94 5.38 4.04 2.88

Equity (%)
Basic earnings per share *11.12 *9.17 8.10 6.34 3.39
(sen)
Net assets per share 1.03 1.08 0.86 0.89 0.90

attributable to shareholders
of the Company (RM)
Share Price - High (RM) 4.00 4.00 5.07 3.08 1.96
Share Price - Low (RM) 1.40 3.00 2.90 1.81 1.18

Company market 752,742 1,024,631 1,056,988 686,683 499,732

capitalisation (RM’000)
FIVE YEAR DIVIDEND PAYMENT AS % OF PROFIT AFTER TAX
2015 2016 2017 2018 2019

Dividend Paid (RM’000) 3,657 15,197 6,741 8,988 8,988
Dividend Payment as % of 11% 46% 23% 39% 75%

Profit after Tax
The Group revenue increased by 7.1% to RM214.1 million in FY2019. The increase in revenue was largely attributed
to higher sales orders from our customers in export markets.
In term of revenue contribution by geographical segments, Malaysia remained the largest market for Kawan, generating
39.4% of the Group turnover, followed by North America (25.6%) and Asia (20.9%).
The Group PBT in FY2019 dropped by 47.5% to RM15.4 million. The decrease in PBT was mainly attributed to higher
operating costs such as depreciation and labour costs.
KAWAN FOOD BERHAD • ANNUAL REPORT 2020

(cont’d)
2016 2017 2018 2019 2020

Revenue 186,948 196,282 199,985 214,087 254,703
Taxation 8,558 6,946 6,437 3,340 4,363
Profit After Tax 32,982 29,106 22,807 12,014 27,652
Non-Controlling Interests - - - (176) (365)
Dividends 15,197 6,741 8,988 8,988 8,988
Bonus Issues - 7,405 - - -
2016 2017 2018 2019 2020

Capital
Share Premium 37,535 - - - -
Non-Controlling Interests - - - 1,024 659
Deferred Taxation 291 1,199 5,660 7,384 9,220
311,951 326,602 340,105 341,682 360,623

Payments
311,951 326,602 340,105 341,682 360,623
19
KAWAN FOOD BERHAD • ANNUAL REPORT 2020

(cont’d)
FINANCIAL RATIOS
2016 2017 2018 2019 2020

Revenue growth (%) 12.77 4.99 1.89 7.05 19.0
Cash ratio (times) 2.01 1.52 1.07 1.18 1.18
P/E ratio (times) 41.44 36.30 30.13 41.00 26.70
Equity (%)
Basic earnings per share *9.17 8.10 6.34 3.39 7.79
(sen)
of the Company (RM)
Company market 1,024,631 1,056,988 686,683 499,732 747,801
2016 2017 2018 2019 2020

Dividend Paid (RM’000) 15,197 6,741 8,988 8,988 8,988
Profit after Tax
Capital Expenditure
During the year under review, the Group incurred capital expenditure amounting to RM18.3 million, which was focused
on infrastructure and equipment for our Pulau Indah manufacturing facilities. The amount was financed through
internally generated funds.
Dividend
An interim single tier dividend of 2.5 sen per ordinary share amounting to RM8.99 million was paid during the year
under review. Additionally, the Group had on 22 February 2021, declared an interim single-tier dividend of 3.0 sen per
ordinary share amounting to RM10.8 million in respect of the FY2021, which was paid on 30 March 2021.
20
(cont’d)
2017 2018 2019 2020 2021

Revenue 196,282 199,985 214,087 254,703 251,770
Taxation 6,946 6,437 3,340 4,363 4.871
Profit After Tax 29,106 22,807 12,014 27,652 31,785
Non-Controlling Interests - - (176) (365) -
Dividends 6,741 8,988 8,988 8,988 10,786
Bonus Issues 7,405 - - - -
2017 2018 2019 2020 2021

Capital
Non-Controlling Interests - - 1,024 659 658
Deferred Taxation 1,199 5,660 7,384 9,220 13,618
Long-Term Borrowings 16,603 12,980 9,358 5,736 2,113
326,602 340,105 341,682 360,623 384,733

Payments
326,602 340,105 341,682 360,623 384,733
18 KAWAN FOOD BERHAD

(cont’d)
FINANCIAL RATIOS
2017 2018 2019 2020 2021

Revenue growth (%) 4.99 1.89 7.05 19.0 (1.2)
Cash ratio (times) 1.52 1.07 1.18 1.40 1.80
P/E ratio (times) 36.30 30.13 41.00 26.70 18.55
Equity (%)
Basic earnings per share 8.10 6.34 3.39 7.79 8.84
(sen)
of the Company (RM)
Company market 1,056,988 686,683 499,732 747,801 589,612
2017 2018 2019 2020 2021

Dividend Paid (RM’000) 6,741 8,988 8,988 8,988 10,786
Profit after Tax
Capital Expenditure
During the year under review, the Group incurred capital expenditure amounting to
RM10.9 million, which was utilised mainly on infrastructure and equipment upgrades
for our PI manufacturing facilities to achieve further operational and cost efficiencies.
The amount was financed through internally generated funds.
Invested
We look forward to continue investing in digitalisation initiatives with an emphasis on RM10.9 mil
technology and process improvements, embracing the IR 4.0 trend to empower greater in IR 4.0 upgrades
growth through innovation.
Dividend
An interim single tier dividend of 3.0 sen per ordinary share amounting to RM10.8 million for FY2021 was paid during
the financial year under review. Additionally, Kawan had on 1 March 2022, declared an interim single-tier dividend of
3.0 sen per ordinary share amounting to RM10.8 million in respect of the FY2022, which was paid on 30 March 2022.
ANNUAL REPORT 2021 19

Annual
5-Year Group Financial Summary Report

2022
and Highlights
REVENUE Year ended 30 September 2018 2019 2020 2021 2022 NET DIVIDEND PER SHARE
(RM million) (sen)
FY18 3,871.0 (i)

Results (RM million) FY18 57.5
FY19 4,077.1 Revenue 3,871.0 (i)

4,077.1 3,988.5 4,130.9 4,470.2 FY19 60.0
Profit before tax (“PBT”) 424.1 (i)

533.0 522.9 479.4 454.1
FY20 3,988.5 FY20 60.0
Adjusted PBT (iv)
402.5 (i)
537.3 524.4 500.3 473.0
1 FY21 4,130.9 FY21 60.0
Earnings before interest, tax, depreciation and amortisation (“EBITDA”) 515.6 (i)
624.7 655.3 613.5 581.7
2 FY22 4,470.2 FY22 60.0 (ii)
Adjusted EBITDA (iv)

494.0 (i)
629.0 656.8 634.4 600.6
3 Profit for the year 386.5 (i)

410.2 410.1 395.1 382.3
PROFIT BEFORE TAX TOTAL ASSETS
(RM million) (RM million)
Dividend per share
Management Discussion & Analysis
FY18 424.1 (i)

FY18 3,345.3
Earnings - basic (sen) 105.3 (i)
111.9 111.9 107.8 104.5
FY19 533.0 FY19 3,503.8
Earnings - diluted (sen) 104.9 (i)
111.6 111.7 107.6 104.3
FY20 522.9 Dividend - net (sen) 57.5 60.0 60.0 60.0 60.0 (ii) FY20 3,520.1
FY21 479.4 Dividend - cover (times) 1.8 1.9 1.9 1.8 1.7 FY21 3,631.7 84
Dividend - payout (%) 55 54 54 56 57

FY22 454.1 FY22 4,190.6 85
Statement of Financial Position (RM million)
EBITDA Share capital 816.8 816.8 816.8 816.8 816.8 SHAREHOLDERS’ EQUITY
(RM million) (RM million)
Shareholders’ equity 2,305.4 (i)
2,529.3 2,690.6 2,819.0 2,982.5
FY18 515.6 (i)
FY18 2,305.4 (i)
Total assets 3,345.3 3,503.8 3,520.1 3,631.7 4,190.6

FY19 624.7 FY19 2,529.3
Total debts (iii)
335.5 123.3 116.4 66.0 310.1
4
FY20 655.3 FY20 2,690.6
Share capital (number of shares) 366.8 366.8 366.8 366.8 366.8
FY21 613.5 Net assets per share (RM) 6.29 (i)

6.90 7.34 7.69 8.13 FY21 2,819.0
5 FY22 581.7 FY22 2,982.5

Ratio (%)
6
PBT on revenue 11.0 (i)
13.1 13.1 11.6 10.2
PROFIT FOR THE YEAR NET ASSETS PER SHARE
7 (RM million) Adjusted PBT on revenue (iv)
10.4 (i)
13.2 13.1 12.1 10.6 (RM)
FY18 386.5 (i)

Return on shareholders’ equity 16.8 (i)
16.2 15.2 14.0 12.8 FY18 6.29 (i)
8
FY19 410.2 Debt to equity ratio 14.6 4.9 4.3 2.3 10.4 FY19 6.90
9
Net debt to equity ratio - - - - -
FY20 410.1 FY20 7.34
FY21 395.1 Notes: FY21 7.69

(i) Restated for adjustments pursuant to the adoption of MFRS 15, Revenue from (iii) Consist of borrowings and lease liabilities. Fraser
Contracts with Customers. (iv) Excluding one-off non-operating items i.e. flood related expenses, insurance claim & Neave
FY22 382.3 FY22 8.13
(ii) Included proposed dividend of 33.0 sen, which will only be recognised in the receivable and restructuring costs. Holdings
financial statements upon shareholders’ approval.
Bhd
Annual
Simplified Group Statement Group Segmental Analysis Report

2022
of Financial Position
TOTAL ASSETS TOTAL EQUITY AND LIABILITIES
REVENUE – BY OPERATING SEGMENTS
FY2022 FY2021 FY2022 FY2021
F&B Malaysia F&B Thailand Property Others
11% 15% 5% 5%
2% 2%
17% 15% 54% 46%
22%
FY2022
1 18%
2 78% 52% 48%

6%
FY2021
3
70%
21% 15%
REVENUE – BY GEOGRAPHICAL SEGMENTS

2%
South East Asia Middle East & Africa Greater China Other countries
2%
2%
2% 86
2%
2% 1%
2% 3%
1% 94% 2% 3% 1% 87
1% 40%
FY2022
3%
35%
93% 3% 3% 1%
FY2021
4
5 OPERATING PROFIT – BY OPERATING SEGMENTS
F&B Malaysia F&B Thailand Property Others

6
Property, plant and equipment Total equity
Right-of-use assets Loans and borrowings
7 Investment properties Trade and other payables
37% 62% 1%
Properties held for development Contract liabilities
Intangible assets Other liabilities (ii)
FY2022
8 Investment in an associate
Investment in a joint venture
9
Trade and other receivables
Inventories
Cash and cash equivalents 21% 78% 1%
Other assets (i)
FY2021
Fraser
& Neave
Notes:
(i) Comprise deferred tax assets, current tax assets and derivative financial assets. Holdings
(ii) Comprise lease liabilities, employee benefits, deferred tax liabilities, current tax liabilities and derivative financial liabilities. Bhd
Annual
Statement of Value Added Group Quarterly Financial Performance Report

2022
REVENUE ANNUAL DIVIDENDS

Basic earnings per
(RM million) (RM million) Revenue Operating profit Profit before tax Profit for the year ordinary share
(RM million) (RM million) (RM million) (RM million) (sen)
FY22 220.1 FY2022: 4,470.2 FY2022: 447.9 FY2022: 454.1 FY2022: 382.3 FY2022: 104.5
2,422.7
Malaysia
1,137.7
1,118.2
FY21 220.1
1,107.7
1,106.6
1
COST OF SALES
2 FY22
(RM million)
3 4,470.2
FY22 3,296.1
FY21 2,936.7
2,047.5
Thailand EMPLOYEE BENEFIT EXPENSES
(RM million)
119.6
109.5
114.4
119.4
112.0
108.1
107.2
98.0
97.5
111.8
93.9
92.9
88
26.6
27.0
25.6
25.4
FY22 294.1
89
FY21 289.7 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2,136.5
Malaysia
RM million Q1 Q2 Q3 Q4 FY2022
INCOME TAX EXPENSES Revenue 1,106.6 1,107.7 1,118.2 1,137.7 4,470.2

(RM million) Operating profit 107.2 109.5 111.8 119.4 447.9
FY21 Adjusted operating profit (i)
132.3 108.4 108.2 117.9 466.8
4,130.9
4
FY22 71.8 Profit before tax 108.1 112.0 114.4 119.6 454.1
Adjusted profit before tax (i)
133.3 110.8 110.8 118.0 472.9
FY21 84.3
Profit for the year 92.9 93.9 97.5 98.0 382.3
5 Basic earnings per ordinary share (sen) 25.4 25.6 26.6 27.0 104.5
1,994.4
6 Thailand ECONOMIC VALUE RETAINED RM million Q1 Q2 Q3 Q4 FY2021
(RM million)
7 Revenue 1,083.1 1,091.8 1,059.6 896.4 4,130.9
FY22 588.1 Operating profit 156.8 138.0 117.2 60.3 472.3
8
Adjusted operating profit (i)
156.8 139.2 126.1 71.1 493.2
FY21 600.1
9
Profit before tax 158.9 139.3 119.2 62.0 479.4
Adjusted profit before tax (i)
158.9 140.6 128.1 72.7 500.3
Profit for the year 136.8 103.5 96.1 58.7 395.1
Notes: Fraser
(i) Employee benefit expenses comprise wages, salaries, contributions to state plans, expenses related to defined benefit plans, share-based payment Basic earnings per ordinary share (sen) 37.3 28.2 26.2 16.0 107.8 & Neave
expense, one-off restructuring costs and other staff costs.
(ii) Economic value retained is calculated by direct economic value generated (revenue) - economic value distributed (annual dividends, cost of sales, Note: Holdings
employee benefit expenses and income tax expenses). Community investments are not included. (i) Excluding one-off non-operating items i.e. flood related expenses, insurance claim receivable and restructuring costs. Bhd
Annual
Financial Calendar Investor Relations Report

2022
as at 15 November 2022
SHAREHOLDER RETURN (FY2013 - FY2022)

Share Capital
F&NHB share price (RM) Dividend per share (sen)
45 120
RM816.8
million
40
100
1
17 JANUARY 2022 No. of
60th Annual General Meeting 35
Shareholders
2
3 30 80
21 JANUARY 2022 7,732
8 FEBRUARY 2022
Date of entitlement of the final
Quarterly announcement on
single tier dividend of 33 sen per

consolidated results for the financial
share for the financial year ended 25
year ended 31 December 2021 Total No. of
30 September 2021
Issued Shares 60
10.0
20
9 FEBRUARY 2022 27 APRIL 2022 17 MAY 2022
Date of payment of the final Quarterly announcement on Date of entitlement of the 366,778,501 90
single tier dividend of 33 sen consolidated results for the interim single tier dividend of
per share for the financial year financial year ended 27 sen per share for the financial 15 40 91
ended 30 September 2021 31 March 2022 year ended 30 September 2022
30.5 30.5 30.5 33.0 33.0 33.0 33.0*

Substantial 10
31 MAY 2022 3 AUGUST 2022 8 NOVEMBER 2022 33.0 35.5 27.0 27.0 27.0 27.0 27.0 27.0 27.0
Shareholders 30.0
Date of payment of the interim Quarterly announcement on Quarterly announcement on
76.235% 22.0 22.0 20
single tier dividend of 27 sen consolidated results for the consolidated results for the 20.0
per share for the financial year financial year ended financial year ended 5
ended 30 September 2022 30 June 2022 30 September 2022
Fraser and
4 16 DECEMBER 2022 Neave, Limited

0 0
Announcements on the Notice of 61st 55.475% FY FY FY FY FY FY FY FY FY FY
19 DECEMBER 2022
Annual General Meeting and dates of 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Issuance of Annual Report for the
5 entitlement and payment for the for
the proposed final single tier dividend
financial year ended 30 September 2022
and Circulars to Shareholders Employees Special dividend Final dividend Interim dividend F&NHB share price
of 33 sen per share for the financial Provident Fund
6
year ended 30 September 2022
Board * Included proposed dividend of 33.0 sen, which will only be recognised in the financial statements
upon shareholders’ approval.
13.242%
7 17 JANUARY 2023
61st Annual General Meeting
OUR INVESTOR PORTAL OUR INVESTOR CALENDAR
8 Amanahraya
We communicate with our shareholders and 17 January 60th Annual General
Trustees Berhad
9 general public via our corporate website, 2022 Meeting
- Amanah Saham
www.fn.com.my/investors/. This website is also
Bumiputera 28 April Half Year Results Briefing
a platform where we share our annual reports,
7.518% financial results, financial briefing presentation 2022
decks, press releases and disclosures to Bursa Fraser
9 November Full Year Results Briefing
Malaysia. & Neave
2022
Holdings
Bhd
Annual
Share Price Movements Report

2022
FRASER & NEAVE HOLDINGS BHD’S SHARE PRICE AND FTSE BURSA MALAYSIA KLCI INDEX (“FBM KLCI INDEX”) FRASER & NEAVE HOLDINGS BHD’S SHARE PRICE AND VOLUME TRADED
14,000,000 40
130
120
1
2 110
12,000,000
35
3 100
90
30
10,000,000
80
70
25
60 92
8,000,000
93
50
20
40
6,000,000
30
15
20
4
10
4,000,000
0 10
5
-10
6
2,000,000
-20 5
7
-30
8
-40
0 0
9
30/09/18 30/09/19 30/09/20 30/09/21 30/09/22
30/09/18 30/09/19 30/09/20 30/09/21 30/09/22
Fraser
& Neave
FBM KLCI index (%) F&N share price (%) F&N volume traded F&N share price (RM)
Holdings
Bhd

Kumpulan 2 - Kancil Group Project

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EPPM 2053

SET L1 SEM 1 SESI 2022/2023

NAMA PENSYARAH: DR. MOHD HAFIZUDDIN SYAH

TUGASAN : ANALISIS KEWANGAN

AHLI KUMPULAN NO MATRIX

YAMUNASRI A/P SUPPIAH A183373

TAMARAISELVI A/P SUNDHARAJOO A183380

MUHAMMAD HAFEEZ BIN MD ZAINI A183748

HOSNIAH BINTI SAPIIN A183372

Kawan Food Berhad is one of Malaysia’s leading exporters and largest

The core values of KFM such as RESPONSIBILITY to take ownership and

History KAWAN FOOD BERHAD has more than 40 years of production

2.1 - LIQUIDITY RATIO

2.1.1 - Current ratio

=Current asset / Current liabilities

Years 2017 2018 2019 2020 2021

Current 89,732 89,802 89,802 105,952 138,222

=Current asset - Inventory/Current liability

Years 2017 2018 2019 2020 2021

Current 89,732 89,802 89,802 105,952 138,222

2.2.1 - Day Sales Outstanding

= Account Receivable/ Average Daily Sales

Account 89,732 89,802 89,802 105,952 138,222

= Sales/Net fixed asset

Sales 196,282 199,985 214,087 254,703 251,770

Years 2017 2018 2019 2020 2021

Sales 196,282 199,985 214,087 254,703 251,770

2.3.1 - Debt ratio

Total Debt 17,802 18,640 16,742 14,956 15,731

= EBIT / Interest Expenses

Years 2017 2018 2019 2020 2021

RM’000 RM’000 RM’000 RM’000 RM’000

EBIT 36,052 29,244 15,354 32,015 36,656

0 0 14.99x 48.58x 55.70x

2.4.1- Operating Margin

Years 2017 2018 2019 2020 2021

RM’000 RM’000 RM’000 RM’000 RM’000

EBIT 36,052 29,244 15,354 32,015 36,656

Sales 196,282 199,985 214,087 254,703 251,770

18.37% 14.62% 7.17% 12.57% 14.56%

=Net Income / Sales

Years 2017 2018 2019 2020 2021

RM’000 RM’000 RM’000 RM’000 RM’000

Net Income 29,106 22,807 12,014 27,652 31,785

Sales 196,282 199,985 214,087 254,703 251,770

14.83% 11.40% 5.61% 10.86% 12.62%

=EBIT / Total Asset

Years 2017 2018 2019 2020 2021

RM’000 RM’000 RM’000 RM’000 RM’000

EBIT 36,052 29,244 15,354 32,015 36,656

Total Asset 326,602 340,105 341,682 360,623 384,733

11.04% 8.6% 4.5% 8.8% 9.53%

= Net Income / Total Assets

Years 2017 2018 2019 2020 2021

RM’000 RM’000 RM’000 RM’000 RM’000

Net Income 29,106 22,807 12,014 27,652 31,785

8.91% 6.7% 3.51% 7.67% 8.26%

= Net Income / Total Equity

Years 2017 2018 2019 2020 2021

RM’000 RM’000 RM’000 RM’000 RM’000

Net Income 29,106 22,807 12,014 27,652 31,785

Total 179,760 + 179,760 + 179,760 + 179,760 + 179,760 +

15.18% 7.3% 3.8% 8.26% 8.9%