F&N proposes 30.5 sen dividend, Q4 net profit plunges 60.4%

PETALING JAYA: Fraser & Neave Holdings Bhd's (F&N) net profit in the fourth quarter ended Sep 30, 2017 plunged 60.4% to RM19.6 million, from RM49.6 million in the previous corresponding quarter due to one-off higher restructuring costs of RM25 million.
Revenue for the quarter slightly decreased to RM976.27 million, compared with RM976.5 million in the same period last year.
The group's board of directors is recommending a final dividend of 30.5 sen per share amounting to RM111.8 million. If approved, the total dividend for the financial year of 2016/2017 would amount to 57.5 sen per share (FY2015/2016: 57.5 sen per share).
For the full-year, its net profit declined 16.1% to RM323.3 million from RM385.4 million a year ago, impacted by higher input and restructuring costs.
Revenue eased 1.6% to RM4.10 billion from RM4.17 billion in the corresponding period last year due to soft consumer sentiment and intense competition faced by the group's Malaysian operations.
Commenting on the group's results, its chairman Tengku Syed Badarudin Jamalullail said it mirrored the group's resilience, benefiting from diversity in geographical contributions and product categories.
"Our robust exports performance showcases the group's growing business outside Malaysia. Amidst the backdrop of a challenging economic and market landscape in Malaysia, our substantial investments in accelerating the export business into a key revenue pillar for the group have proven to be significantly profitable and well-timed."
On its prospects, the group's CEO Lim Yew Hoe said the Malaysian business environment is expected to remain challenging, as a result of competitive price pressure and weak consumer demand.
Lim said with the completion of the business transformation exercise in its Malaysian operations, the group expects to extract synergies and value from improved organisational efficiency and operational cost savings in the new financial year.
"Management remains cautious about the state of consumer sentiment in Thailand. Nevertheless, management will continue to be vigilant and responsive to changes in the external environment and consumer trends, take necessary action to maintain long term sustainable growth and continuously grow the export pillar," Lim added.