F&N net profit at RM395.2mil in FY21, recommends 33 sen dividend

KUALA LUMPUR: Fraser & Neave Holdings Bhd (F&N) posted a lower net profit of RM395.16mil for the financial year ended Sept 30, 2021 (FY21) from RM410.38mil in FY20.

The food and beverage (F&B) group attributed the lower earnings to higher commodity prices, reduced export margins, company restructuring and Covid-19-related expenses as well as a lower share of profit from an associate.

“The 3.7% decline in the group profit for the year was partially mitigated by investment tax incentives at F&B Thailand and deferred tax assets recognised for F&B Malaysia,” it said in a filing with Bursa Malaysia.

Revenue, however, increased to RM4.13bil in FY21 against RM3.99bil previously, driven by the strong export performance of its F&B business in Malaysia and Thailand as well as nine months of contribution from its food business.

The group also recommended a final single-tier dividend of 33 sen per share, similar to those in FY20, despite the tough operating environment.

For the fourth quarter ended Sept 30, F&N saw its net profit drop to RM58.69mil from RM85.99mil in the same period last year, with revenue declining to RM896.26mil versus RM953.70mil previously.

In a separate statement, chief executive officer Lim Yew Hoe acknowledged that FY21 was undoubtedly difficult in both demand and cost aspects,

However, contributions from diversified products and geographical presence were key to the group’s resilient performance for the year, he said.

Moving forward, he said the group remains cautious given the challenging market conditions and ongoing global uncertainties due to the pandemic.

“Exports will continue to be a key focus, moving forward, for both F&B Malaysia and F&B Thailand.

“We will not shy away from investing in capability to tap into new opportunities, be it for our own branded exports or key original equipment manufacturer customers,” he said.

He added that the group will focus on building its new halal-packaged “food pillar”. — Bernama

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