Financial Accounting Report: Dutch Lady vs. F&N Holdings Bhd

This report provides a comparative financial accounting analysis of two prominent Malaysian companies: Dutch Lady and F&N Holdings Bhd. The report begins with a detailed overview of each company's background, including their origins, core business activities, and market positioning within the food and beverage industry, with a specific focus on dairy products. It then delves into the future prospects of both companies, examining their expansion plans, investments in new facilities and land, and strategies for growth in the face of market challenges. The report also highlights the latest developments within each company, such as product innovations, sustainability initiatives, and efforts to enhance product transparency and meet consumer demands. The analysis incorporates insights from academic journals and industry reports, offering a comprehensive understanding of the financial accounting aspects and strategic directions of Dutch Lady and F&N. The report concludes with a summary of key findings and implications for the companies' future performance, making it a valuable resource for students studying financial accounting and business analysis.

Financial Accounting

TABLE OF CONTENTS
COMPANY BACKGROUND........................................................................................................3
FUTURE PROSPECTS ..................................................................................................................3
LATEST DEVELOPMENT............................................................................................................4
REFERENCES................................................................................................................................6

COMPANY BACKGROUND
In this report, the two companies taken are Dutch lady and F&N. Dutch Lady Milk
industries Berhad carrying out the business in the name of Dutch Lady Malaysia is into the
business of cow milk products in Malaysia from the year 1960. Earlier it was working under the
Royal FrieslandFoods which is an MNC operative in Netherland. The products of it are purefarm
UHT milk, friso gold, pasteurized and sterilized milk, milk power for children and zero percent
fat drinking yogurt. It has a workforce of around 600 employees with the core mission to make
the Malaysian people move forward in their life with the healthy and the trusted nutrition (Sadou,
Alom & Laluddin, 2017). In the year, 2000, the company changed the name from Dutch Baby
Milk Industries to the Dutch lady with the new commitment for the goodness for life, for gaining
knowledge and to gain experience. It is constantly looking for innovation for further
strengthening its position as the leading fairy company. It has worked in association with the
various government programs for sustainability and distributed its products to the children.
F&N Holdings Bhd is the oldest and the well established F&B company with its brands
enjoying the fun of brand distinguish and the market leader and is also considered as a household
name. It is listed on the Bursa Malaysia having a turnover of over 4 bn through its core business
in the stream of production or manufacturing along with the sales and distribution of the same
products. It has a wide range of products which includes products and services in relation to food
and beverages which also includes soft drinks and diary products (Jun and et.al., (2019). The
main point of distinction between the two is the diversity and the geographical operations of the
business and the strong distribution network and market share which has been created with years
of experience. It has workforce of approximately 2600 what makes it and distinguish it from the
others which results into delivering sustainable growth and well being of the environment and
community in order to meet with the present and the future needs and wants of the customers.
The core mission of the company is to offer superior return to its investors and shareholders
along with providing value to its customers and excellent career for its employees.
FUTURE PROSPECTS
Dutch lady: The company is expanding it business in respect to its manufacturing
capabilities as it has acquired 32.59 acres of the land for nearly 56.79 million which will assist
the government in its food security measures which was impacted because of the pandemic. The
new facility which is located in a HALMAS technology park will be beneficial for the company's

long term expansion plan along with the corporate earnings (Sadou, Alom, and Laluddin, 2017).
It is the part of the on-going plans with the objective of ensuring the sustainable growth in all its
business related activities and will be helpful in propelling the local diary along with the halal
industries which is the main key to the food securitisatiion. The main target of the company is to
provides higher and healthy quality of products.
F&N: After the acquisition of 4454 hec of leasehold land for the purpose of developing
the fresh milk will result into accelerating the company's equity in the liquid milk segment which
will consequently result into increment in the opportunities available for the future growth. With
this investment F&N Bhd is willing to make allocate nearly 3000 Ha of the site for the crop
farming for creating the supply of corn to the dairy farms having an approximate capacity to
household nearly 20000 cows which will result into producing 200 mn litres of milk every year
(Yee and et.al. 2020). The company is looking for expanding its fresh milk consumption in
Malaysia with the objective of reducing the reliance of the company over the imported milk in
order to meet with the increasing the requirements of the country's growing population with
respect to the nutrition. The current prospects of the company for the year ended 2020, is very
challenging because of tough competition in the domestic market.
LATEST DEVELOPMENT
Dutch lady: The company has worked on improving and enhancing the product
transparency which is through the launching of the TrackEasy for its Friso Gold products. This
feature will permit the customers in tracing the milk production through each step from grass to
glass which is just possible through the way of QR code scanning which is provided on the
packaging. DLMI's initiative to bring sustainability has resulted into creation of the new
packaging which is made up of the recyclable materials which is sourced from the certified
forests of the Forest Stewardship Council and other various controlled sources (Erizal, 2017).
The informative steps with respect to the product is provided in each pack of it in order to further
educate the consumer so that they can be part of the DL sustainability initiative. The QR code
provided on each pack will allow the customers in getting the information on the recycling
centers which are participating in this initiative and how to get it recycled at the respective
centers. Now the customers can get the new DL milk products at all the markets includes the
hypermarkets and the supermarket and on the e-commerce sites as well.

F&N: The main focus of the company is on driving innovation in its product
development process and to expand the product portfolio with the objective of concentrating on
the healthier products. It is investing in the RM 15 mn in the evaporated milk segment in order to
meet up with the demand domestic as well as for export purpose (Sharma, 2019). The export has
been growing continuously driving the company in grabbing the opportunity created. Working
on innovation is focused on for bringing sustainable growth and increase in profitability. The
company is also ramping up its product portfolio for meeting the increasing consumer demand of
the healthy milk product and convenience for meeting up with the changing trend in the
lifestyles.

REFERENCES
Books and Journals
Erizal, N. (2017). Corporate Governance and its Impact on Firm Performance and Risk in Food
and Beverages Industry: Empirical Analysis on Dutch Lady Berhad.
Jun, O. E., & et.al., (2019). Issues of Entering New Market and Ways to Overcome the Issues
Company: F&N Holdings Berhad. Asia Pacific Journal of Management and
Education. 2(3). 29-36.
Sadou, A., Alom, F., & Laluddin, H. (2017). Corporate social responsibility disclosures in
Malaysia: evidence from large companies. Social Responsibility Journal.
Sadou, A., Alom, F., & Laluddin, H. (2017). Corporate social responsibility disclosures in
Malaysia: evidence from large companies. Social Responsibility Journal.
Sharma, E. (2019). A review of corporate social responsibility in developed and developing
nations. Corporate Social Responsibility and Environmental Management. 26(4). 712-
720.
Yee, C. S., & et.al. (2020). The Key Success Factors of Fraser & Neave (F&N). International
Journal of Applied Business and International Management, 5(2), 54-65.