F&N registers RM104.4m 2Q19 profit

By BERNAMA / Pic By TMR

Fraser & Neave Holdings Bhd’s (F&N) net profit for the second quarter ended March 31, 2019 (2Q19), increased to RM104.43 million from RM92.56 million recorded in the same period a year ago.

Revenue grew by 6.9% to RM1.02 billion from RM959.6 million previously, it said in filing to Bursa Malaysia yesterday.

“The 2Q19 results were driven by the strong performance of F&N’s unit in Thailand which recorded a 17.1% revenue growth to RM483.6 million compared to the corresponding quarter in 2018,” the group said.

F&N’s Malaysian sales volume grew by 6.5% in 2Q19 on the back of higher beverage sales from successful Chinese New Year activations, coupled with improvements in the route-to-market in Sabah and Sarawak.

F&N chairman Tengku Syed Badarudin Jamalullail said the overall domestic market for Malaysia is expected to remain challenging — especially in the canned milk segment and the implementation of excise duty on sugar-sweetened beverages (SSB).

“The postponement of the imposition of excise duty on SSB to July 1 instead of the earlier proposed date of April 1 will help F&N Group to better mitigate the impact for the financial year,” he said.

The prospects for Thailand are expected to be better, following the improvement in the sweetened and unsweetened condensed milk segments, and the group will increase investment in brand building to strengthen its product portfolio in the second half of the financial year, he added. — Bernama