F&N’s first quarter profit drops 16%

PETALING JAYA: Fraser and Neave Holding’s Bhd (F&N) fell 16.1% to RM127.28 million for the first quarter ended Dec 31, 2016 against RM 151.66 million in the previous corresponding period mainly due to organisational restructuring costs incurred and the absence of the foreign exchange gain.

However, its revenue for showed a slight increase by 2% from RM1.07 billion to RM1.09 billion.

In a filing with the stock exchange, F&N said it expects the economic environment to remain soft with weaker consumer sentiments and business conditions.

A weaker ringgit and Thai Baht has also led to the expectations for higher commodity prices as key commodities such as milk and whey powder, aluminium and soya beans are denominated in US Dollar, the company noted.

Despite the challenges from, F&N said it will continue to be vigilant and responsive to changes in the external environment and take necessary action to maintain sustainable growth in revenue and profitability.