Fraser & Neave reported its Q1 revenue for FY23, the Group recorded revenue of RM1.218 billion compared to Q1 FY2022: RM1.106 billion), representing 10.1% growth from the corresponding quarter last year. The growth, the group said was driven by beverage sales for the festive season, higher exports from F&B Malaysia, an additional contribution from Cocoaland and partly offset by lower exports from F&B Thailand.
The group’s operating profit for Q1 FY2023 doubled to RM224.9 million (Q1 FY2022: RM107.2 million) mainly due to RM89.3 million fair value gain recognised from the remeasurement of previously held equity interest in Cocoaland and RM5.0 million insurance claim received for plant and equipment damaged during the flood in Shah Alam last year. Excluding one-off non-operating items, the adjusted Group operating profit marginally declined by 1.3% to RM130.7 million (Q1 FY2022: RM132.3 million) due to lower operating profit generated by F&B Thailand.
Excluding one-off non-operating items, the adjusted Group profit before tax declined by 3.8% to RM128.2 million (Q1 FY2022: RM133.3 million) due to higher interest costs from borrowings to fund the acquisition of Cocoaland and Ladang Permai Damai. Group profit after tax grew by 112.9% to RM197.9 million (Q1 FY2022: RM92.9 million) due to higher non-taxable income (i.e. remeasurement gain of the previously held equity interest in an associate amounting to RM89.3 million).
F&B Malaysia’s revenue for Q1 FY2023 increased by 23.9% to RM713.3 million (Q1 FY2022: RM575.6 million), driven by the positive momentum of beverage sales and the additional contribution from Cocoaland. The recovery of festive activities, successful execution of festive campaigns, and early sell-in for Chinese New Year, contributed to higher beverages revenue for the quarter. Exports from Malaysia also grew, driven by a double-digit recovery in key markets although partly dampened by lower sales to Greater China due to Covid-19 pandemic lockdowns. Excluding one-off non-operating items, F&B Malaysia adjusted operating profit improved by 38.3% to RM65.5 million (Q1 FY2022: RM47.4 million) on the back of the higher volume, improved margins for both beverages and dairies, Cocoaland contribution, and partly offset by higher input and packaging costs.
Group revenue for the quarter grew 7.1% to RM1,218.5 million (Q4 FY2022: RM1,137.6 million) compared to the preceding Q4 FY2022, mainly contributed by higher festive sales and exports from F&B Malaysia and additional Cocoaland contribution.
Group profit before tax increased to RM222.4 million (Q4 FY2022: RM119.5 million) compared to the preceding Q4 FY2022 mainly due to one-off non-operating items. Excluding one-off non-operating items, the adjusted Group profit before tax increased by 8.6% to RM128.2 million due to higher revenue.
