Fraser & Neave Holdings Bhd recorded a revenue of RM1.24 billion for its fourth quarter ended 30 September 2023 (Q4 FY2023), representing a 9.4% growth from the same quarter last year as the group credits sustained sales momentum in F&B Malaysia including contribution from Cocoaland.
Group’s operating profit for Q4 FY2023 grew by 39.1% to RM166.2 million. This was attributed to improved margins and cost management strategies, complemented by the contribution from Cocoaland. Excluding one-off non-operating items, the Group’s adjusted operating profit for Q4 FY2023 grew by 38.5%.
Group profit before tax for Q4 2023 rose to RM161.8 million. Excluding one-off non-operating items, the Group adjusted profit after tax increased by 36.5% to RM136.0 million despite notably higher interest costs.
Revenue for the quarter rose by 13.5% to RM681.8 million, driven by higher domestic and export sales, efficient price management strategies, and Cocoaland contribution. Operating profit for F&B Malaysia in Q4 FY2023 grew by 18.6% to RM59.0 million inclusive of an RM3 million insurance claim related to business interruption and other one-off non-operating items.
Excluding one-off non-operating items, F&B Malaysia’s adjusted operating profit improved by 9.3% to RM52.8 million. F&B Thailand recorded RM561.7 million in revenue for Q4 FY2023. Despite lower revenue, F&B Thailand’s Q4 FY2023 operating profit increased by 60.9% (52.1% in Thai Baht) to RM120.7 million, driven by margin improvements and net favourable commodity prices, except for sugar.
For the full year ended 30 September 2023 (FY2023), Group revenue grew by 11.9% to RM5 billion as markets recovered and the price management strategies implemented since last year took effect. Group export revenue crossed the RM1 billion mark (FY2022: RM0.8 billion). Further, the Group also benefited from an expanded revenue stream following the acquisition of Cocoaland Holdings Berhad on 4 November 2022.
Group operating profit for FY2023 rose to RM642.9 million on the back of higher revenue and one-off non-operating items (mainly the remeasurement gain of the 27.62% equity interest previously held in Cocoaland prior to the privatisation exercise and other one-off items). Excluding one-off nonoperating items, the adjusted Group operating profit grew by 26.8% to RM592.1 million underpinned by a concerted focus on margin improvement, operational excellence, supply chain management, and sustainability initiatives.
Consequently, despite RM29.9 million higher interest costs to finance the recent strategic acquisitions, the Group adjusted profit after tax excluding one-off items for FY2023 grew by 22.4% to RM489.7 million.
Full-year revenue grew by 17.9% to RM2,851.5 million for FY2023, fuelled by festive sales and out-of-home consumption.
F&B Thailand’s revenue for FY2023 increased by 4.8% (1.7% in Thai Baht) to RM2,146.2 million, aided by favourable foreign exchange translation from a stronger Baht. Thailand’s adjusted operating profit (excluding one-off non-operating items) for FY2023 grew by 37.1% (33.0% in Thai Baht) to RM378.3 million, driven by operational efficiencies and better margin management, partly offset by elevated input and packaging costs (sugar, milk and tin can) and higher investment on brand activities.
