Fraser & Neave Malaysia released its The Group revenue for Q2 FY2024 grew 12.1% to RM1.35 billion (Q2 FY2023: RM1.2 billion which the group said was driven by continuing momentum for F&B Thailand and F&B Malaysia, festive sales and aided
by favourable foreign exchange translation from stronger Thai Baht.
The group’s added its operating profit for Q2 FY2024 increased by 64.7% to RM207.5 million (Q2 FY2023: RM126.0 million) due to higher sales and supported by improvement in margins from favourable product/country mix, lower input costs, manufacturing overhead efficiencies, and savings in the supply chain. Profit after tax increased by 62.5% to RM165.7 million (Q2 FY2023: RM102.0 million) from higher profits, although moderated by higher interest costs and tax expense.
F&B Malaysia revenue increased by 11.3% to RM787.7 million primarily driven by robust sales during the Chinese New Year and earlier Hari Raya sales period this year. Correspondingly, F&B Malaysia Q2 FY2024 operating profit grew by 92.7% to RM92.9 million (Q2 FY2023: RM48.2 million) on the back of higher revenue, margin improvements from favourable product/country mix, and savings in manufacturing overheads and logistic costs. This, it said was offset by escalating input costs for certain commodities (sugar, rice, gelatine and cocoa) F&B Thailand also saw revenue increasing.
Overall, Group revenue for 1H FY 2024 grew by 10.7% to RM2.68 billion, an increase of RM260.2 million over the previous year (1H FY2023: RM2.42 billion). Group operating profit for 1H FY2024 increased by 18.8% to RM416.8 million (1H FY2023: RM350.9 million) on the back of higher revenue and better margins from both F&B Malaysia and F&B Thailand.
Excluding one-off non-operating items primarily due to RM89.3 million fair value gain recognised from remeasurement of previously held equity interest in Cocoaland in 1H FY2023. The adjusted Group operating profit increased by 60.9% to RM412.9 million (1H FY2023: RM256.5 million) despite escalating input costs for certain key commodities.
The adjusted Group profit after tax for 1H FY2024 is higher at RM332.2 million (1H FY2023: RM205.5 million) from higher profits, although moderated by marginally higher interest costs and tax expense.
