PETALING JAYA: Fraser & Neave Holdings Bhd’s (F&N) net profit for the fourth quarter ended Sept 30, 2022 grew 68.5% to RM98.89 million from RM58.69 million in same quarter last year on the back of strong demand and margin recovery from price adjustments.
Revenue rose 26.9% year-on-year to RM1.14 billion from RM896.26 million, reflecting stable recovery of economic activities, business returning to pre-pandemic levels as well as cost management strategy.
Net profit for the full year was flat at RM383.21 from RM395.16 million while revenue for the year increased 8.2% to RM4.47 billion from RM4.13 billion driven by a revival in domestic demand and price adjustment strategy, as well as the growing contribution from food business.
The board has recommended a final single-tier dividend of 33.0 sen per share (2021: 33.0 sen) for approval by shareholders at the AGM. If approved, the total dividend for the year would amount to 60.0 sen per share, similar to last year.
The group said despite continuing macro uncertainties, it has encouraging momentum of recovery in economic activity and tourism in Malaysia and Thailand and will continue to drive sales for the coming festive seasons.
Whilst some commodity prices began to stabilise, prices of tin plate/cans, milk and palm oil are expected to stay elevated into 2023. Rising inflation and the weakening of the ringgit and Thai baht in the face of the strong US dollar will further compound the cost pressure.
Exports remain a key focus for the group, which also serve as a natural hedge to cushion the forex impact. The group said it will continue to navigate the volatile environment and take deliberate steps to enhance resiliency through the forward purchase of key commodities and hedging strategy.
F&N chairman Tengku Syed Badarudin Jamalullail commented that both the upstream milk and halal food sectors hold great potential for further growth as people are becoming more health conscious and selective in what they consume.
“The development of our two new business pillars will create many new opportunities for us, our customers and our employees. We remain focused on implementing our mid and longer-term strategies that will enable us to respond to challenges and opportunities with confidence and conviction,” he said in a statement today.