F&N net profit down 26% in Q3

PETALING JAYA: Fraser & Neave Holdings Bhd’s (F&N) net profit for the third quarter ended June 30, 2017 fell 26% to RM69.37 million from RM93.55 million for the same quarter a year ago, mainly due to lower revenue, higher input costs, particularly sugar, and restructuring costs in the local market.

Revenue declined 6% to RM1.04 billion from RM1.11 billion in the previous year’s corresponding quarter.

For the nine months period, net profit dropped 10% to RM303.73 million from RM335.78 million a year ago. Revenue dropped 2.1% to RM3.13 billion from RM3.19 billion in the previous year’s corresponding period.

F&N said the business environment in Malaysia is expected to remain challenging, with continuing weak consumer sentiment and intense price competition. The group also remains cautious on the state of consumer sentiment in Thailand.

“Despite these challenges, management will continue to be vigilant and responsive to changes in the external environment and take necessary action, including reviewing our cost structure, to maintain long-term sustainable growth and continuously grow the export pillar,” F&N said.