KUALA LUMPUR: Fraser & Neave Holdings Bhd’s (F&N) net profit for the first quarter ended Dec 31, 2021 (Q1’22) declined to RM92.95 million, from RM136.8 million in Q1’21.
In a filing with Bursa Malaysia yesterday, the group said earnings were moderated by commodity price pressures, impact from the flood and foreign exchange translation loss from a weaker Thai baht.
However, revenue increased to RM1.1 billion from RM1.08 billion previously.
F&N said food and beverage Malaysia (F&B Malaysia) revenue grew by 1.3% to RM575.6 million from RM568.2 million in Q1’21, with revenue from the food pillar cushioning the impact from floods and shipping disruptions to domestic and export businesses.
“In Malaysia, positive momentum was building up to Chinese New Year for festive selling. Out-of-home consumption improved with the gradual easing/lifting of movement control restrictions in the states during the quarter nationwide.
“However, from the fourth week of December, domestic sales were impacted by the floods in Selangor and other states, and the transportation disruption,” it said.
F&N said exports from Malaysia had continued to grow in the weeks before flash floods inundated Port Klang, resulting in the postponement of some shipments to the next quarter.
Meanwhile, F&B Thailand revenue in Q1’22 grew 10.3% (in baht terms) from higher domestic sales and exports.
However, it said the unfavourable ringgit-baht translation led to lower percentage growth for revenue in ringgit terms, with an increase of 3% to RM529.8 million from RM514.4 million in Q1’21.
“F&B Thailand continued to drive promotions, expand distribution coverage for its products, and recruit new users with hawker decorations and loyalty campaigns,” it said, adding that the group launched the F&N Full Cream Evaporated Milk, the first full cream evaporated milk in Thailand.
Moving forward, F&N expects the environment to remain challenging due to the high prices of key raw and packaging materials and uncertainties arising from the Covid-19 Omicron variant.
“As the last resort, we may adjust product pricing gradually to ease margin pressures due to further increase in commodity prices and other input materials,” it said. – Bernama