F&N posts Q3 net profit of Rm93.85mil

The Star Malaysia - StarBiz - - News -

PETALING JAYA: Fraser & Neave Hold­ings Bhd’s (F&N) net profit for its third quar­ter ended June 30, 2020 dropped 18% to Rm93.85mil com­pared with Rm114.94mil in the pre­vi­ous cor­re­spond­ing pe­riod, due to the ad­verse im­pact of the Covid-19 pan­demic and move­ment con­trol or­der (MCO) mea­sures on con­sumer de­mand.

Rev­enue in the third quar­ter was lower at Rm918.07mil com­pared with Rm1.07bil a year ear­lier.

In a fil­ing with Bursa Malaysia yes­ter­day, the food and bev­er­age (F&B) com­pany said quar­terly rev­enue for do­mes­tic op­er­a­tions de­clined by 21.2% with flat monthly sales, un­like pre­vi­ous years where sales in­creased in the run-up to the Hari Raya fes­tive sea­son.

“Bev­er­ages sales were par­tic­u­larly af­fected while Dairies sales were less af­fected.

“With MCO and the re­stric­tions im­posed on dine-ins, sales to our ho­tel, restau­rants and cafes (Horeca), con­ve­nience stores and gen­eral trade chan­nels were af­fected sig­nif­i­cantly.

How­ever, th­ese have been mit­i­gated by in­crease in sales to mod­ern trade chan­nels.”

Since the gov­ern­ment eased the MCO re­stric­tions from early May, F&N said its F&B busi­ness has seen grad­ual im­prove­ment in sales and stock move­ment.

As for its Thai­land op­er­a­tions, F&N said quar­terly rev­enue de­clined by 7.7% (11.1% in Thai baht terms) to Rm455.8mil, mainly im­pacted by a con­trac­tion in sales in do­mes­tic and In­dochina mar­kets and par­tially off­set by growth in ex­ports.

“With the pan­demic out­break, Thai­land’s do­mes­tic rev­enue con­tracted by 14.7% (in Thai baht terms) com­pared with the pre­vi­ous year, es­pe­cially in Horeca gen­eral trade chan­nels.

“The de­cline was partly due to higher stocks in trade as prod­ucts were front-loaded in the sec­ond quar­ter ahead of the emer­gency de­cree im­ple­mented in Thai­land from March 26, 2020” said F&N.

For the nine-month pe­riod ended June 30, 2020, F&N’S net profit stood at Rm324.39mil com­pared with Rm342.23mil in the pre­vi­ous cor­re­spond­ing pe­riod, while rev­enue dipped to Rm3.03bil com­pared with Rm3.10bil a year ear­lier.

Com­ment­ing on its prospects, F&N said it has been a chal­leng­ing time for many com­pa­nies as the Covid-19 pan­demic and the con­tain­ment mea­sures have taken their toll on the econ­omy.

“While we be­lieve our strong busi­ness fun­da­men­tals will see us through this cri­sis, we are mind­ful that glob­ally the war against the pan­demic is far from over. We will con­tinue to be vig­i­lant and have taken the nec­es­sary mea­sures in our of­fices and fac­to­ries to safe­guard our staff well-be­ing.

“In the longer term, we be­lieve this pan­demic is an op­por­tu­nity for re­set and a cat­a­lyst for change. We will need to be fu­ture-fo­cused to en­sure we can emerge stronger from this cri­sis. This will in­clude process im­prove­ments and dig­i­tal­i­sa­tion.”

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