KUALA LUMPUR: Fraser & Neave Holdings Bhd’s (F&N) net profit declined to RM92.95 million for the first quarter ended Dec 31, 2021 (Q1 2022), from RM136.8 million in Q1 2021.
In a filing with Bursa Malaysia on Feb 8, the group said earnings were moderated by commodity price pressures, impact from the flood and foreign exchange (forex) translation loss from a weaker Thai baht.
However, revenue had increased to RM1.1 billion from RM1.08 billion previously.
F&N said for food and beverage Malaysia (F&B Malaysia), the revenue grew by 1.3% to RM575.6 million from RM568.2 million in Q1 2021, with revenue from the food pillar cushioning the impact from floods and shipping disruptions to both domestic and export business.
“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, for F&B Thailand, revenue in Q1 2022 grew 10.3% (in Thai Baht terms) from higher domestic sales and exports.
However, it said the unfavourable ringgit Malaysia (RM)/Thai baht (THB) translation led to the lower percentage growth for revenue in RM terms, with an increase of 3% to RM529.8 million from RM514.4 million in Q1 2021.
“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 had 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 very 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