F&N cautioned that the remainder of financial year 2024 is likely to remain volatile.
PETALING JAYA: Fraser & Neave Holdings Bhd
(F&N) will continue to capitalise on the return of international tourists and out-of-home consumption post-pandemic.
For the first quarter ended Dec 31, 2023 of financial year 2024 (1Q24), F&N’s net profit declined by 14% year-on-year (y-o-y) to RM170.7mil or earnings per share of 46.60 sen.
Meanwhile, revenue was up by 9% y-o-y to RM1.3bil from RM1.2bil, driven by continuing momentum for Food and Beverages Thailand (F&B Thailand) and Food and Beverages Malaysia (F&B Malaysia), higher exports and aided by favourable foreign exchange translation from a stronger Thai baht.
In a filing with Bursa Malaysia, F&N said F&B Malaysia’s revenue for 1Q24 increased by 6.9% y-o-y to RM762.6mil, supported by higher penetration for dairies and food segment, as well as higher exports.
Moreover, the three months of results for Cocoaland are included for 1Q24, compared to two months for 1Q23. The acquisition of Cocoaland was completed on Nov 4, 2022.
In terms of operating profit, F&B Malaysia saw an 18.2% y-o-y growth to RM83.3mil, inclusive of recognition of a RM4.2mil insurance claim in respect of property damage and inventories due to flood.
F&N said excluding the one-off non-operating items, the adjusted operating profit improved by 20.7% y-o-y to RM79mil on the back of higher revenue, manufacturing overhead and logistic savings (reduction in third party logistics) and favourable commodity costs (except for sugar) and offset by higher advertising and promotions spending.
On the other hand, F&B Thailand’s revenue for 1Q24 was up by 12.9% y-o-y to RM569.1mil due to the favourable Thai baht and ringgit translation.
The group said F&B Thailand was supported by tourist arrivals to Thailand and the change in business model for the Cambodia market.
With regards to the division’s operating profit, F&B Thailand saw a 85.4% y-o-y expansion to RM125.9mil, on the back of favourable commodity costs and supply chain savings from logistics optimisation.
F&N cautioned that the remainder of financial year 2024 is likely to remain volatile, amidst commodity price fluctuations, inflationary pressures, and geopolitical uncertainties.
Nevertheless, the group said it will continue its efforts to build up halal packaged food and dairy pillars and focus on the core of its business to deliver “Pure Enjoyment, Pure Goodness” to its stakeholders.
The group said it remains resolute in its long-term growth strategies focused on delivering cost efficiency and identifying new market opportunities, regardless of the market environment.
