F&N’s Q4 revenue rises on higher sales in Malaysia and Thailand

PETALING JAYA: Fraser & Neave Holdings Bhd (F&N) posted higher revenue of RM1.26 billion for its fourth quarter ended Sept 30, 2024 (Q4’24) compared to RM1.24 billion in the corresponding quarter last year.

The growth was driven by higher domestic sales in both Food & Beverage Malaysia (F&B Malaysia) and Food & Beverage Thailand (F&B Thailand), despite external challenges such as geopolitical tensions affecting global trade and logistics, and unfavourable baht-ringgit translation.

Group operating profit for Q4’24 declined by 27.9% to RM119.9 million (Q4’23: RM166.2 million) attributed to startup costs from its integrated dairy farm, restructuring costs, unrealised foreign exchange losses and lower profit contribution from F&B Thailand. This was partly offset by a higher profit contribution from F&B Malaysia.

Group profit after tax for Q4’24 declined by 39.1% to RM84.7 million (Q4’23: RM139 million) primarily due to higher tax expense resulting from the expiration of Board of Investment incentive for F&B Thailand in Q3’24 and higher withholding taxes on dividends repatriated from F&B Thailand.

CEO Lim Yew Hoe said, “Q4 also reflects a period of strategic adjustment across all our business units, where we optimised trade inventory, realigned marketing investments, and managed restructuring costs. These targeted actions were undertaken to ensure an optimum start to our financial year 2025.”

F&B Malaysia recorded Q4’24 revenue of RM670.5 million compared to RM681.8 million in the same period last year due to weaker exports affected by geopolitical tensions and higher freight charges. Conversely, the domestic market remained strong, bolstered by effective marketing strategies and greater outlet presence.

Meanwhile, the group sustained its growth for the full financial year of 2024 (FY24) with revenue increasing 4.9% to RM5.25 billion, up from RM5 billion last year. This is primarily fuelled by higher domestic sales from F&B Malaysia and F&B Thailand, and exports to Cambodia.

Group operating profit for FY24 increased by 10.4% to RM709.5 million, compared to RM642.9 million in the previous year, while group profit before tax improved by 11.6% over last year. Adjusting for one-off non-operating items which include the remeasurement gain of the previously held equity interest in Cocoaland Holdings Bhd, the adjusted group operating profit grew by 19.9% to RM709.7 million (FY23: RM592.1 million).

The group recorded 11.3% growth in adjusted profit after tax at RM545.2 million from RM489.7 million last year.

The board has proposed a final single-tier dividend of 33 sen per share for the financial year ended Sept 30 2024. The total dividend for the year would amount to 63 sen per share, bringing the total dividend payout for FY24 to RM231.1 million.