F&N posts higher quar­terly earn­ings

The Star Malaysia - StarBiz - - News -

KUALA LUMPUR: Fraser & Neave Hold­ings Bhd (F&N) posted higher earn­ings in the last quar­ter ended Sept 30, boosted by cheaper price of sugar and lower over­head ex­penses.

Net profit in the last quar­ter rose to RM81.2mil, or 22.2 sen a share on rev­enue of RM996mil. This lifted its full year earn­ings to RM385mil com­pared with RM323mil made a year ago.

The com­pany has pro­posed an in­terim div­i­dend pay­out of 30.5 sen a share.

“Cost syn­er­gies and lower over­heads in its Malaysia op­er­a­tions, favourable in­put cost, higher ex­port rev­enue and lower re­struc­tur­ing costs and other one-off items in­curred com­pared to the year be­fore con­trib­uted to the dou­ble-digit profit growth in FY18,” F&N said in a state­ment.

The maker of Teapot sweet­ened con­densed milk and 100Plus iso­tonic drinks, how­ever, warned that do­mes­tic mar­kets in Malaysia and Thai­land are ex­pected to re­main chal­leng­ing with con­tin­u­ing com­pet­i­tive price pres­sures and in­ten­si­fy­ing com­pe­ti­tion as well as volatil­ity in for­eign cur­rency move­ments and com­mod­ity prices.

“We will con­tinue to sharpen our fo­cus on en­sur­ing con­tin­u­ous and sus­tain­able growth in our three pil­lars – F&B Malaysia, F&B Thai­land and ex­ports,” said chair­man Tengku Syed Badarudin Ja­malul­lail.

To mit­i­gate the risk of volatile in­put cost, F&N has par­tially hedged its core com­mod­ity re­quire­ments for the com­ing fi­nan­cial year with the cor­re­spond­ing for­eign cur­rency ex­po­sure.

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.