F&N earnings up in Q3

PETALING JAYA: Fraser & Neave Holdings Bhd’s (F&N) net profit for the third quarter ended June 30 jumped 51% to RM104.5 million from RM69.37 million a year ago with positive contribution from both F&B Malaysia and F&B Thailand.
Revenue however declined marginally by 1.1% to RM1.03 billion compared with RM1.04 billion in the previous year’s corresponding quarter mainly due to lower revenue from F&B Thailand.
For the nine months period, its net profit was flat at RM303.89 million, compared with RM303.73 million a year ago, while revenue eased marginally by 0.4% to RM3.11 billion from RM3.13 billion in the previous year’s corresponding period.
F&N said the business environment in Thailand will continue to be challenging with intensifying competitive price pressure. In Malaysia, the management will monitor the impact of the reintroduction of the Sales and Services Tax on Sept 1 on the pricing of the products.
Meanwhile, raw and packaging material prices in subsequent quarters are expected to remain volatile following the uptrends in packaging and milk-based commodity prices; compounded by the continuing high level of oil prices. The group has hedged its core commodity requirements for the financial year along with the corresponding foreign currency exposure wherever possible.
Operational cost savings from the transformation initiatives and efficiency through process improvement are expected to continue to contribute positively to the Malaysian operations in the coming quarters.
“The group will continue to leverage on innovations to deliver new and unique product offerings while focusing on meeting consumers’ evolving needs toward healthier beverage choices, convenience and affordability. The board and management will continue to remain vigilant and take decisive actions in managing the changes in external environment to ensure sustainable growth for our business,” F&N said.