F&N quarterly net profit up on operational cost savings

KUALA LUMPUR: Fraser and Neave Holdings Bhd’s (F&N) net profit for the third quarter ended June 30, rose to RM104.48mil from RM69.52mil recorded in the same period last year.

Revenue, however, fell to RM1.02bil from RM1.04bil registered previously due to lower contribution from its Thai operations, it said in a filing with Bursa Malaysia yesterday.

Operating profit for both countries improved due to favourable input and packaging material costs for the quarter.

The company said operating profit for the food and beverage business in Malaysia improved significantly by 102.8% to RM49.1mil while operating profit for the food and beverage business in Thailand rose 11.4% to RM57.4mil.

It said operational cost savings and lower overheads also contributed to better operat- ing profit for the food and beverage business in Malaysia.

For the nine-month period, F&N’s net profit increased slightly to RM303.86mil from RM303.71mil registered in the same period last year while revenue declined marginally to RM3.11bil from RM3.12bil previously.

On prospects, it said operational cost savings from the transformation initiatives and efficiency through process improvement was expected to contribute positively to the Malaysian operations in the coming quarters.

It said the company would also continue to leverage on innovations to deliver new and unique product offerings while focusing on meeting consumers’ evolving needs towards healthier beverage choices, convenience and affordability. — Bernama