F&N shares fall despite profits increase

KUALA LUMPUR: Fraser & Neave Holdings Bhd’s (F&N) shares have suffered a marginal fall in early trade despite posting higher earnings in the last quarter ended Sept 30, 2018.

The maker of Teapot sweetened condensed milk and 100Plus isotonic drink fell eight sen, or 0.23% to RM34.70.

Its net profit in the fourth quarter ended Sept 30 rose to RM81.2mil, or 22.2 sen a share on revenue of RM996mil. This lifted its full year earnings to RM385mil compared with RM323mil made a year ago.

The company has proposed an interim dividend payout of 30.5 sen a share.

However, the company warned that domestic markets in Malaysia and Thailand are expected to remain challenging with continuing competitive price pressures and intensifying competition as well as volatility in foreign currency movements and commodity prices.

To mitigate the risk of volatile input cost, F&N has partially hedged its core commodity requirements for the coming financial year with the corresponding foreign currency exposure.

Stock on the Move , F N