Fraser and Neave Malaysia reported its Q3 performance with revenue rising by 19.1% to RM1.33 billion compared to Q3 2022 of RM1.11 billion, the group said the increase was driven by robust festive sales, improvement in both the F&B Malaysia and F&B Thailand domestic markets, recovery in export markets and additional Cocoaland contribution (Cocoaland is included in F&B Malaysia segment).
Consequently, the Group’s operating profit for Q3 FY2023 grew at 12.6% to RM125.9 million (Q3 FY2022: RM111.8 million) driven by overall higher prices, margin and cost management, and Cocoaland contribution and partially offset by one-off non-operating-items (fair value loss on investment properties, impairment loss on property, plant and equipment and inventories written down). Excluding one-off non-operating items, Group operating profit for Q3 FY2023 grew by 59.2%.
Group profit after tax for Q3 FY2023 grew by 5.9% to RM103.2 million (Q3 FY2022: RM97.5 million). Excluding one-off non-operating items, Group profit after tax grew by 55.5% despite significantly higher interest costs.
Meanwhile, its F&B Malaysia revenue grew by 19.5% to RM748.8 million (Q3 FY2022: RM626.8 million), driven by higher sales for its domestic and export markets, festive sales, higher prices and additional Cocoaland contribution. Q3 FY2023 operating profit was lower at RM26.6 million (Q3 FY2022: RM50.4 million) due to one-off non-operating items from impairment loss on property, plant and equipment and inventories written down.
Excluding these one-off non-operating items, F&B Malaysia’s adjusted operating profit improved by 34.2% to RM62.8 million (Q3 FY2022: RM46.8 million) on the back of higher revenue and operational savings, offset by higher input costs (sugar and raw milk), unfavourable foreign exchange impact and higher advertising and promotions (A&P) expenses. F&B Malaysia also
ramped up its marketing campaigns in the quarter in conjunction with F&N 140th Anniversary, World Hydration Day and 100PLUS Zero Cuba Try Taste Campaign, sponsorship for Jacky Cheung Concert 2023, amongst others
As for YTD revenue, Group revenue for YTD June FY2023 improved by 12.7% to RM3,757.0 million, an increase of
RM424.4 million over the previous year (YTD June FY2022: RM3,332.6 million). Group operating profit for YTD June FY2023 rose to RM476.7 million (YTD June FY2022: RM328.5 million) on the back of higher revenue and one-off non-operating items. Excluding one-off nonoperating items, the adjusted Group operating profit still showed a notable growth of 22.9%, increasing to RM428.8 million (YTD June FY2022: RM348.9 million) despite the persistent challenges of high input costs and coupled with unfavourable forex impact from strong US Dollar.
Consequently, the adjusted Group profit after tax for YTD June FY2023 grew by 17.8% at RM353.7 million (YTD June FY2022: RM300.3 million), moderated by RM23.1 million higher interest costs to finance the recent strategic acquisitions.
