KUALA LUMPUR: Fraser and Neave Holdings Bhd
's (F&N) net profit rose to RM97.50 million in the third quarter ended June 30, 2022 (Q3) from RM96.16 million a year ago as improved sales in Malaysia and price adjustments helped to mitigate pressures from Thailand operation and export markets.
Revenue rose to RM1.12 billion from RM1.06 billion, it said in a filing to Bursa Malaysia today.
F&N said Food and Beverages (F&B) Malaysia's revenue rose by 16 per cent to RM626.8 million in Q3 on the back of higher sales during the Hari Raya celebration, successful execution of promotion campaigns, easing of movement restrictions, as well as lifting of travel restrictions in May 2022.
Beverage sales grew double-digit in the quarter, supported by high festive sales, greater out-of-home consumption and higher selling prices.
Dairies revenue improved despite a decline in volume following price adjustments undertaken to ease the sharp rise in input cost, while revenue for food products were lower due to early sell-in for the Hari Raya festive season in the previous quarter.
It said exports from Malaysia were impacted in price-sensitive markets and in Greater China amid strict COVID-19 lockdown measures.
Revenue from the Thailand operation eased 5.4 per cent to RM490.08 million due to unfavourable foreign exchange translation from a weaker Thai baht.
"While Thailand's economy is gradually recovering as the tourism industry improves, the domestic sales declined for evaporated milk category affected by price adjustments, partially mitigated by growth in sales for the condensed milk category," F&N said.
Nevertheless, sales for liquid milk segment grew with the launch of new products under F&N Magnolia.
F&B Thailand also continued to gain market share for sweetened condensed milk and evaporated milk categories through strong promotions and loyalty programmes.
Although Thailand faced volume decline due to higher prices, new orders and expansion into new markets helped to mitigate weaker domestic demand.
The company said sales in Indochina grew mainly due to higher sales in Cambodia and partially offset by weaker sales in Laos. - Bernama
