Profit drops: A worker arranging packets of sugar in a shop in Kuala Lumpur. F&N said its operating profit for its Malaysian operations has been hit by higher cost of raw materials, particularly sugar.
PETALING JAYA: Fraser & Neave Holdings Bhd
(F&N), which saw a decline in profits despite an increase in revenue during the first quarter ended Dec 31, 2016 (Q1’17), expects margins to remain under pressure in the coming quarters due to the higher cost of agriculture commodities.
“Input costs in subsequent quarters are expected to increase following the uptrend in commodity prices further compounded by a weaker ringgit and baht, as key commodities like milk and whey powder, aluminium and soybean are denominated in US dollars,” it said.
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