F&N profit down 16% in first quarter

PETALING JAYA: Fraser & Neave Holdings Bhd’s (F&N) net profit for the first quarter ended Dec 1, 2017 fell 16% to RM106.83 million from RM127.28 million a year ago due higher input cost for its business operations.

Revenue declined marginally by 2% to RM1.07 billion compared with RM1.09 billion in the previous year’s corresponding quarter.

F&N said the Malaysian business environment is expected to remain challenging amid market contraction in the beverages categories and intense competitive price pressure in the coming festive seasons.

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

Meanwhile, F&N said the business outlook in Thailand is positive but the management remains cautious about the state of consumer sentiment.

“Our Malaysian and Thai businesses are expected to benefit as a net importer from the strengthening ringgit and Thai baht. However, this may present a challenge to our export business.”

“The board and management will continue to be vigilant and take decisive actions to ensure sustainable growth for our businesses and expand our global reach for our exports pillar.”