KUALA LUMPUR: Fraser & Neave Holdings Bhd's (F&N) posted a higher net profit of RM99.37 million for the third quarter ended June 30, 2023 (3Q23) than RM97.5 million a year ago on the back of higher revenue.
Quarterly revenue improved to RM1.33 billion from RM1.12 billion previously, driven by robust festive sales, improvement in both the F&B Malaysia and F&B Thailand domestic markets, recovery in export markets and additional Cocoaland contribution.
As a result, the food conglomerate registered a higher earnings per share of 27.10 sen from 26.60 sen in 3Q22, according to its filing to Bursa Malaysia today.
F&N said its operating profit for 3Q23 grew 12.6 per cent to RM125.9 million from RM111.8 million a year ago, underpinned by overall higher prices, margin and cost management, and Cocoaland contribution and partially offset by one-off non-operating items.
"Excluding the one-off non-operating item, group operating profit for the third quarter grew by 59.2 per cent," it noted.
F&N said F&B Malaysia's revenue for the quarter under review grew 19.5 per cent to RM748.8 million, driven by higher sales for its domestic and export markets, festive sales, higher prices and additional Cocoaland contribution.
F&B Thailand revenue for the third quarter rose by 18.8 per cent to RM582.1 million, underpinned by recovery in exports and higher domestic sales.
"Additionally, higher prices combined with continued discount management measures, contributed to the improvement in revenue," said F&N.
For the cumulative period of nine months, F&N registered a higher net profit of RM399.34 million from RM284.32 million previously, while revenue rose to RM3.76 billion from RM3.33 billion.
F&N said heading into the final quarter of the financial year, the group maintains a cautiously optimistic outlook amid volatility in commodity prices and foreign exchange rates and inflationary pressures on its costs and impact on consumer demand.
Although some commodity prices have stabilised, challenges persist in prices of tin plates and cans, raw milk and palm oil, and the upward trend in sugar prices.
"We have purchased substantially our raw material requirements for the fourth quarter.
"Nevertheless, we will remain vigilant and proactively navigate this volatile and inflationary environment, leveraging on our diversified brand portfolio, businesses and geographical presence and our steadfast commitment to innovation, efficiency and sustainability," it said.
F&N said as it celebrates its 140th anniversary, the group remains focused on implementing the mid and longer-term initiatives to position it to become a stable and sustainable F&B business.
"We have taken a significant stride towards our vision of becoming a leading milk producer in Malaysia with the recent ground-breaking ceremony of our integrated dairy farm in Gemas, Negri Sembilan on June 15 this year, marking the beginning of our journey into the upstream fresh milk sector," it noted.