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PETALING JAYA: Fraser & Neave Holdings Bhd
(F&N) is maintaining a cautiously optimistic outlook for the remainder of its current financial year, amidst volatility in commodity prices and foreign exchange rates.
In a filing with Bursa Malaysia, the food and beverage (F&B) giant said it is also wary of inflationary pressures on costs and its impact on consumer demand.
“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,” it said.
For its third quarter ended June 30, 2023, F&N’s net profit rose to RM99.37mil from RM97.5mil in the previous corresponding period, while revenue improved to RM1.3bil from RM1.1bil a year earlier.
Basic earnings per share stood at 27.10 sen versus 26.60 sen previously.
F&N said revenue during the quarter was driven by robust festive sales, improvement in both the F&B Malaysia and F&B Thailand domestic markets, recovery in export markets and additional Cocoaland contribution.
Consequently, the group said its operating profit for the third quarter grew 12.6% to RM125.9mil.
It said this was driven by overall higher prices, margin and cost management, Cocoaland contribution, as well as a one-off non-operating item that was partially offset.
“Excluding the one-off non-operating item, group operating profit for the third quarter grew by 59.2%.”
F&N also said group net profit grew by 55.5% despite significantly higher interest costs.
The group said F&B Malaysia’s revenue for the quarter under review grew 19.5% to RM748.8mil, driven by higher sales for its domestic and export markets, festive sales, higher prices and additional Cocoaland contribution.
F&B Thailand revenue for the third quarter, meanwhile, soared by 18.8% to RM582.1mil, fueled by recovery in exports and higher domestic sales.
“Additionally, higher prices combined with continued discount management measures, contributed to the improvement in revenue,” said F&N.
For the nine-months period ended June 30, 2023, F&N’s profit rose to RM399.34mil from RM284.32mil a year earlier, while revenue grew to RM3.76bil from RM3.33bil previously.
Going forward, F&N said it will remain vigilant and proactively navigate the volatile and inflationary environment, leveraging on its diversified brand portfolio, businesses and geographical presence and steadfast commitment to innovation, efficiency and sustainability.
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