F&N posts RM103mil profit in Q2

KUALA LUMPUR: Beverage maker Fraser & Neave Holdings Bhd posted improved revenue in the March quarter, but said higher commodity prices and shipping freight rates have impacted its profit margin.

"Commodity prices are on the uptrend and expected to rise further," Chief Executive Officer Lim Yew Hoe said in a statement today.

"Regardless of the situation, we will continue to develop our rich portfolio of brands and expand our geographical presence, while adapting and refining our strategies to constraints imposed by the pandemic,” he added.

For second quarter ended March 31, F&N revenue grew 8.6% o RM1.09bil, supported by steady domestic sales and higher exports.

Net profit was little changed at RM103.5mil, or 28.2 sen a share.

F&N has declared an interim payout of 27 sen a share.

"Despite subdued Chinese New Year festivities due to Movement Control Order (MCO 2.0) restrictions in Malaysia, there was positive momentum in on-premise demand after the easing of restrictions in early March," it said in a statement today.

The group said its operations in Malaysia also reported double-digit growth in exports.

“Against a challenging backdrop, we built on our adaptive route-to-market execution and channel strategies to reach out to consumers and meet their expectations. We are also fortunate to have strong brands such as 100PLUS which are the must-haves during the festivities.” Lim said.

“Meanwhile in Thailand, the team supported the trade with value offers and attractive promotions to help hawkers, café and restaurant operators to quickly restart their business activity," he added.

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