FRASER & Neave Holdings Bhd (F&N) continues to impress with its strong performance in the third quarter of 2023 (3Q23), posting a net profit of RM99.37 million, surpassing last year’s figure of RM97.5 million.
The growth can be attributed to higher revenue, with quarterly sales reaching RM1.33 billion compared to RM1.12 billion in the previous year.
The revenue boost was driven by robust festive sales, a strong performance in the F&B Malaysia and F&B Thailand domestic markets, recovery in export markets, and the positive impact of Cocoaland Industry Sdn Bhd’s contribution.
The company’s earnings per share also saw a healthy increase, reaching 27.1 sen compared to 26.6 sen in the same quarter of the previous year.
F&N’s operating profit for the third quarter grew by an impressive 12.6%, reaching RM125.9 million from RM111.8 million last year.
This growth was supported by higher prices, effective margin and cost management, contributions from Cocoaland, and partially offset by one-off non-operating items.
Excluding the one-off non-operating item, F&N’s group operating profit witnessed substantial growth of 59.2%.
Within its segments, F&B Malaysia recorded significant revenue growth of 19.5% to RM748.8 million, driven by increased sales in both domestic and export markets, higher festive sales, and the positive impact of Cocoaland’s addition.
Similarly, F&B Thailand saw its revenue rise by 18.8% to RM582.1 million, thanks to a recovery in exports and higher domestic sales.
The implementation of discount management measures and higher prices also contributed to the improvement in revenue.
Over the cumulative nine-month period, F&N achieved a net profit of RM399.34 million, marking a substantial increase from RM284.32 million in the previous year.
Revenue for the same period rose to RM3.76 billion from RM3.33 billion. This consistent growth underscores the company’s resilience and strategic positioning in the competitive F&B industry.
Looking ahead, F&N maintains a cautiously optimistic stance given the volatility in commodity prices, foreign exchange rates, and inflationary pressures on costs and consumer demand.
F&N said it faces ongoing challenges in commodity prices for tin plates and cans, raw milk, palm oil and sugar.
F&N marks its 140th anniversary with a focus on sustainable growth, including a strategic move into the fresh milk sector through a groundbreaking ceremony for an integrated dairy farm in Malaysia. – TMR / pic TMR FILE
- This article first appeared in The Malaysian Reserve weekly print edition