F&N POSTS HIGHER NET PROFIT OF RM99.37 MLN IN 3Q

KUALA LUMPUR, Aug 3 (Bernama) -- Fraser & Neave Holdings Bhd’s net profit increased to RM99.37 million in the third quarter (3Q) ended June 30, 2023 compared to RM97.50 million in the same period a year earlier. 

Group revenue rose to RM1.33 billion in 3Q from RM1.12 billion previously, driven by robust festive sales, improvement in both Food and Beverages (F&B) Malaysia and F&B Thailand domestic markets, recovery in export markets, and additional contribution from Cocoaland Holdings Bhd, it said in a filing with Bursa Malaysia.

The company said F&B Malaysia’s revenue in 3Q grew by 19.5 per cent to RM748.8 million from RM626.8 million previously, driven by higher sales in the domestic and export markets, festive sales, higher prices, and additional Cocoaland contribution. 

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Meanwhile, F&B Thailand’s revenue in the quarter reviewed soared by 18.8 per cent to RM582.1 million from RM490.1 million a year earlier, fuelled by the recovery in exports and higher domestic sales.

Additionally, it said higher prices combined with continued discount management measures contributed to the revenue improvement in F&B Thailand’s operations.

On prospects, F&N said, heading into the final quarter of the current financial year, the company has maintained a cautiously optimistic outlook amid the volatility in commodity prices and foreign exchange rates and inflationary pressures on costs and their impact on consumer demand.

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“Although some commodity prices have stabilised, challenges persist in prices of tin plates/cans, raw milk and palm oil, and the upward trend in sugar prices. We have purchased substantially our raw material requirements for the fourth quarter.

“Nevertheless, we will remain vigilant and proactively navigate this volatile and inflationary environment, leveraging our diversified brand portfolio, businesses and geographical presence and our steadfast commitment to innovation, efficiency and sustainability,” it added. 

As F&N celebrates its 140th anniversary, the company remains focused on implementing the mid- and longer-term initiatives that will enable it to position the Group to become a stable and sustainable F&B business.

“We have taken a significant stride towards our vision of becoming a leading milk producer in Malaysia with the recent ground-breaking ceremony of our integrated dairy farm in Gemas, Negeri Sembilan on June 15, 2023, marking the beginning of our journey into the upstream fresh milk sector,” it said. 

On May 3, 2023, F&N declared an interim single-tier dividend of 27 sen per share (2022: 27 sen) totalling about RM99.0 million for the financial year ending Sept 30, 2023 which was paid on June 1, 2023.

-- BERNAMA