F&N Q4 profit jumps fourfold

PETALING JAYA: Fraser & Neave Holdings Bhd’s (F&N) net profit for the fourth quarter ended Sept 30 quadrupled to RM81.2 million from RM19.6 million a year ago attributed to higher contribution from both F&B Malaysia and F&B Thailand.

Its revenue for the quarter also increased by 2.1% to RM996.6 million from RM976.3 million in the previous corresponding quarter.

F&N’s full-year net profit grew 19.1% to RM385.1 million against RM323.4 million a year earlier, while revenue grew marginally by 0.2% to RM4.11 billion from RM4.1 billion previously.

On prospects, the group said it expects the overall domestic market for both Malaysia and Thailand to remain challenging with continuing competitive price pressures and intensifying competition as well as volatility in foreign currency movements and commodity prices.

It has partially hedged its core commodity requirements for the next financial year along with the corresponding foreign currency exposure wherever possible.

In Malaysia, F&N said its management will assess and closely monitor the impact of the imposition of excise duty at 40 sen per litre on ready-to-drink beverages that contain sugar exceeding five grams per 100 millilitres, starting April 1, 2019 as announced in Budget 2019, including taking appropriate actions as necessary.

Meanwhile, it said F&B Thailand is expected to commence paying corporate taxes next year after the utilisation of the carried forward losses from non-promoted businesses.