Fraser & Neave reported a stronger Q2 FY2023 driven by a better performance by both F&B units, its group revenue rose by 8.9% to RM1,206.6 million driven by positive momentum from festive sales for F&B Malaysia and Cocoaland contribution with recently acquired Cocoaland included under the F&B Malaysia segment.
The Group’s operating profit correspondingly grew 15.1% to RM126.0 million driven by overall better price, margin and cost management, and Cocoaland contribution. Group profit after tax for Q2 FY2023 grew by 8.6% to RM102 million despite significantly higher interest costs.
The group said its F&B Malaysia revenue grew by 15.0% to RM707.6 million, on the back of positive sales momentum from the festive season and Cocoaland contribution. The division has also ramped up its trade and marketing activities with economic activities returning to normalcy. Despite higher brand investments, F&B Malaysia’s adjusted operating profit improved by 9.4% to RM48.1 million.
F&B Thailand’s revenue grew marginally by 1.3% (-0.1% in Thai Baht) to RM498.1 million (Q2 FY2022: RM491.8 million) whilst operating profit surged 26.3% (24.8% in Thai Baht) to RM78.1 million (Q2 FY2022: RM61.8 million). F&N said strategic measures to manage price and better discount management helped to moderate slower-than-anticipated tourist arrivals and lower exports.
Group revenue for 1H FY 2023 improved by 9.5% to RM2,425.1 million, an increase of RM210.8 million over the previous year while group operating profit rose to RM350.9 million mainly due to RM89.3 million fair value gain recognised from the remeasurement of previously held equity interest in Cocoaland and RM5 million insurance claim received for plant and equipment damaged during the flood in Shah Alam last financial year.
Excluding one-off non-operating items, the adjusted Group operating profit increased by 6.6% to RM256.5 million despite
the persistent high cost of goods sold. The adjusted Group profit after tax for 1H FY2023 was maintained at par at RM205.5 million (1H FY2022: RM205.0 million), moderated by RM15.5 million higher interest costs due to the recent strategic
acquisitions.
