F&N'S net profit rises to RM542.77mil in FY24

Publish date: Wed, 06 Nov 2024, 10:30 AM

KUALA LUMPUR: Fraser & Neave Holdings Bhd's (F&N) net profit increased to RM542.77 million in the financial year ended Sept 30, 2024 (FY2024) from RM536.90 million in FY2023.

Revenue rose to RM5.25 billion from RM5.0 billion previously,  fuelled by higher domestic sales from its food and beverage (F&B) operations in Malaysia and Thailand, and exports to Cambodia, with beverages, water and dairy products being the key performance drivers.

The company said F&B Malaysia's revenue for the year increased 3.5 per cent year-on-year (y-o-y) to RM2.95 billion, driven by strong festive demand, supported by successful market penetration and demand-generation campaigns,  although this was partly offset by lower exports.

Meanwhile, F&B Thailand recorded RM2.29 billion in revenue for FY2024, reflecting a 6.7 per cent growth y-o-y, driven by stronger sales to Cambodia, following a successful nationwide promotion and full-year impact of Bear Brand sales.

"Domestic sales were partly dampened by a limited supply of fresh milk and margin protection initiatives for certain products," it said in a filing with Bursa Malaysia today.

As for its performance in the fourth quarter, the company reported that its net profit fell to RM84.99 million from RM137.56 million a year ago, while its revenue rose to RM1.26 billion from RM1.24 billion previously.

"This growth was driven by higher domestic sales in both F&B Malaysia and F&B Thailand, despite external challenges such as geopolitical tensions affecting global trade and logistics, and unfavourable baht/ringgit translation," it said.

Following its favourable results, the company's board proposed a final single-tier dividend of 33 sen per share; a payout amounting to approximately RM121.0 million, scheduled to be paid on Feb 10, 2025.

Subject to shareholders' approval at the forthcoming Annual General Meeting, the total dividend for the year would amount to 63 sen per share, bringing the total dividend payout for FY2024 to RM231.1 million, it said.

On the group's outlook for FY2025, chief executive officer Lim Yew Hoe underscored F&N's ongoing vigilance and adaptability in navigating a volatile global landscape.

"Earlier this year, we highlighted our cautious approach going into the second half of the year and we continue to remain vigilant and adaptable to market shifts and wider geopolitical and macroeconomic movements.

"Indeed, over the past few years, we have systematically built agility for value creation into our operations. This has allowed us to make strategic and tactical responses in a timely manner, either to mitigate risks or capitalise on opportunities," said Lim.



  - Bernama

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