Fraser & Neave Holdings Bhd (F&N) recorded a 13.5% year-on-year (YoY) decline in net profit to RM92.57 million in the second quarter (2Q) ended March 31, 2018, due to higher input costs, advertising expenses and sales incentives.
In a filing to Bursa Malaysia yesterday, the fast moving consumer goods maker noted a 2.1% YoY increase in revenue to RM1.01 billion boosted by Chinese New Year festive promotions and exports.
Moving forward, the group will continue to deliver new product offerings particularly in meeting consumers’ needs toward healthier options through the introduction of more products with lower sugar content.
It also plans to meet consumers’ demand for affordability through the right pack sizes and prices.
The business environments in both Malaysia and Thailand will continue to be challenging with prolonged weak consumer sentiments and intensifying competitive price pressure, the company noted.
Raw and packaging material prices are expected to remain volatile in subsequent quarters following the uptrends in packaging and milk-based commodity prices, compounded by the continuing uptrend of oil prices.