KUALA LUMPUR: Fraser and Neave Holdings Bhd
(F&N) posted a higher net profit of RM121.63 million for the third quarter ended June 30, 2024 (3Q FY2024) against RM99.37 million in 3Q FY2023.
Revenue, however, fell to RM1.30 billion from RM1.33 billion previously, attributed to geopolitical uncertainties affecting exports from Food and Beverages Malaysia (F&B Malaysia), as well as the weakening of the Thai baht.
For the cumulative nine months of FY2024, the group's net profit rose to RM457.78 million versus RM399.342 million last year, while revenue increased to RM3.99 billion from RM3.76 billion previously.
F&N said the improved profit after tax in 3Q FY2024 was due to the expiration of the Board of Investment (BOI) incentive for F&B Thailand in the current quarter, despite higher tax expenses.
It said F&B Malaysia's revenue for 3Q FY2024 decreased by 2.5 per cent to RM730.0 million (3Q FY2023: RM748.8 million) mainly due to challenges in the export business and weaker demand as well as rising ocean freight charges resulting from the Red Sea shipping crisis.
"However, the domestic business continued to maintain its momentum in the beverages and dairy categories across all channels, supported by successful marketing campaigns and increased outlet penetration, despite an early sell-in for Hari Raya festive season in 2Q FY2024," it added.
Meanwhile, F&B Thailand's revenue grew by 0.5 per cent in local currency in 3Q FY2024, primarily driven by higher exports to Indochina and effective promotions and marketing campaigns.
However, the growth was tempered by unfavourable currency translation, resulting in a 1.5 per cent year-on-year decline in revenue to RM573.3 million (3Q FY2023: RM582.1 million).
Moving forward, the group said it is on track to complete Phase 1 of its dairy farm in Gemas, Negeri Sembilan by early 2025.
Meanwhile, the construction of its manufacturing plant in Cambodia is currently in the tender phase, it added. - Bernama
