F&N posts higher quarterly earnings

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.