Fraser & Neave Holdings Bhd (F&N) has maintained its Group operating profit and profit before tax at RM130 million and RM134 million respectively for the second quarter ended March 31.
The results were driven by strong contribution from F&B Thailand.
The Group’s revenue eased marginally from RM1,025.4 million to RM1,005.6 million from adverse impact of the Covid-19 pandemic and movement control measures on consumer demand.
This is further reflected in Food & Beverages Malaysia’s revenue for the second quarter, which declined by 7.8 percent to RM 499.2 million due to an earlier sell-in for Chinese New Year this year.
It also saw the added impact from the Movement Control Order (MCO) which commenced from March 18 and partially offset by higher growth in export revenue especially in ASEAN and Greater China.
While the Group has recorded growth in exports compared to last year, the quantum increase was limited due to postponement of orders as a result of lockdown and quarantine imposed on shipping vessels in certain countries due to Covid-19.
Additionally, lower revenue, higher dairies input cost, unfavourable foreign currency impact and partially offset by lower advertising and promotions spend led to lower operating profit for F&B Malaysia in the second quarter.
Operating profits had declined 13.7 percent to RM 24.3 million from RM 28.2 million last year.
The Group had also posted higher revenue for the first half ended March 31 which grew 4 percent to RM 2,116.7 million from RM 2,035.7 million last year.
The Group operating profit saw a rise by 2.2 percent to RM288.3 million whilst Group profit before tax grew 2.3 percent to RM 294.7 million for the first half year compared to 2019.
The Group highlighted that despite subdued consumer demand, F&B Malaysia has maintained its sales volume as last year while its revenue eased marginally by 1percent to RM 1,084.2 million for the first half year.
The result is further bolstered by double digit growth in exports and contributions from new products. Meanwhile, net unfavourable dairies input costs led to operating profit for F&B Malaysia declining 9.5 percent to RM 73.0 million for its first half year.
F&NHB chief executive officer, Lim Yew Hoe attributed the Group’s sustained growth to a strong first quarter performance, combined with balanced geographical footprint and a relentless focus on innovation and cost efficiency efforts.
“Although the situation is still evolving, we are gratified to have navigated through the challenges from the containment measures in recent months,” said Lim.
“Our goal is to ensure continued availability of our core products to consumers during these trying times while safeguarding the welfare of our employees, trade partners and community at large,” he added.