Fraser & Neave Holdings Bhd CEO Lim Yew Hoe. AZMAN GHANI/ The Star
KUALA LUMPUR: Fraser & Neave Holdings Bhd
(F&N) wrapped its 2024 financial year with a slightly improved bottomline despite a slide in profits in the fourth quarter.
Over the 12-month period, F&N reported a net profit of RM542.77mil compared to RM536.9mil in FY23. Revenue during the year was RM5.25bil, up from RM5bil in the year before.
However, the group said there was a drop in operating profit in 4QFY24 due to start-up costs from its integrated dairy farm, restructuring costs, unrealised foreign exchange losses and lower profit contribution from F&B Thailand.
During the quarter under review, F&N posted a net profit of RM84.99mil, which compared to a net profit of RM137.56mil in the same quarter in 2023.
The group's earnings per share during the quarter fell to 23.2 sen from 37.5 sen.
Revenue, however, was higher at RM1.26bil from RM1.24bil previously.
In line with the performance, the board of directors recommended a final dividend of 33 sen per share, scheduled to be paid on Feb 10, 2025.
CEO Lim Yew Hoe said the group made strategic adjustments across all its business units in 4Q, including optimising trade inventory, realigning market investments and managing restructuring costs.
"These targeted actions were undertaken to ensure an optimum start to our financial year 2025,” he said in a statement.
Lim added that the group continues to balance its focus between its growth initiatives in agriculture and its traditional businesses.
"Although the focus is on F&N AgriValley, we are equally committed to investing in our core businesses in which we are investing to help the Group capture value.
"Other than the development of our dairy manufacturing plant in Cambodia, some of the new capital expenditures include a new carbonated beverages and drinking water line in Butterworth, a new sterilised milk filling and packing line in Pulau Indah, as well as a new chocolate manufacturing line in Rawang," he said.
F&N also noted that the delivery of the first batch of heifers from the US, scheduled for Oct 29, 2024, had been cancelled following the receipt of a suspension letter from the Department of Veterinary Services due to avian flu outbreak concerns.
“It is unfortunate our plans to play a part in enhancing the nation’s food security in line with the Malaysia Madani framework did not go as planned. F&NHB is exploring options,” said Lim.
