F&N’s Q2 net profit increases to RM165.4m on higher sales

KUALA LUMPUR: Fraser & Neave Holdings Bhd (F&N) posted a higher net profit of RM165.41 million in the second quarter ended March 31, 2024 (Q2’24) from RM101.18 million in Q2’23 due to higher sales.

Revenue rose to RM1.35 billion from RM1.21 billion previously, driven by sustained growth momentum for food and beverages (F&B) in Thailand and Malaysia, festive sales in Malaysia and a stronger baht, said the group in a statement to Bursa Malaysia .

For the first half of 2024 (H1’24), the group's net profit increased to RM336.15 million compared to RM299.98 million in H1’23, while revenue grew to RM2.69 billion from RM2.43 billion previously.

According to F&N, F&B Malaysia’s revenue rose by 11.3% year-on-year (y-o-y) to RM787.7 million in Q2’24, primarily driven by robust sales during the Chinese New Year and Hari Raya periods.

Similarly, F&B Thailand delivered a positive performance during the quarter, with revenue registering 13.2% y-o-y growth to RM563.8 million, compared to RM498.1 million in Q2’23, mainly driven by successful loyalty programmes, higher exports to Indochina and other countries, and favourable currency translation.

F&N CEO Lim Yew Hoe credited the group’s performance to strategic decisions taken over the past few years, to sustain growth in its existing F&B sector while assimilating new ventures and embarking on its integrated dairy division.

“Despite challenging market conditions, our strategic choices have proven effective. Crucially, we regained volume growth in sales of our key products.

“Our investments in supply chain optimisation and solar photovoltaic (PV) system have also yielded long-term benefits in cost, and operational efficiencies and carbon footprint reduction,” he said.

On prospects, Lim said the group remains vigilant and adaptable to market shifts and wider geopolitical and macroeconomic movements.

“Although we have benefited from an overall improvement in commodity prices, we anticipate challenges with the rising costs of raw materials such as sugar, rice, gelatine and cocoa powder. Nevertheless, we have taken measures to address these challenges as these commodities are vital to our business,“ he added.

Meanwhile, F&N declared an interim single-tier dividend of 30 sen per share for the financial year ending Sept 30, 2024, amounting to about RM110 million, which will be paid on May 31. – Bernama