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F&N Q2 profit down due to commodity price pressures and foreign exchange loss, declares 27 sen dividend

KUALA LUMPUR (April 27): Fraser & Neave Holdings Bhd (F&N) net profit fell 9.32% to RM93.87 million for the second quarter ended March 31, 2022 (2QFY22), from 103.51 million RM a year ago, on commodity price pressures and forex conversion loss due to weaker baht.

Earnings per share fell to 25.60 sen from 28.20 sen, according to the beverage company’s filing with Bursa Malaysia.

Revenue increased slightly by 1.47% from RM1.09 billion to RM1.11 billion, supported by improved food and beverage performance in Malaysia.

On a quarterly basis, net profit and revenue were little changed from the RM92.95 million and RM1.11 billion reported for 1QFY22.

F&N has declared an interim dividend of 27 sen per share, to be paid on May 31.

For the first half of FY22, Group Net Profit decreased by 22.26% to RM186.82 million from RM240.32 million in the same period of FY22. FY21, due to higher commodity prices, the impact of flooding and the foreign exchange loss from a weaker baht. .

Half-year revenue increased slightly by 1.81% to RM2.21 billion from RM2.17 billion.

F&N chief executive Lim Yew Hoe said the results demonstrate the group’s resilience in the face of enormous pressure on multiple fronts.

He said rising global commodity prices amounted to an additional RM200 million cost of goods sold (COGS) for the first half.

Thanks to rigorous cost management measures, including price adjustments and trade discounts, the group has significantly reduced the impact on its results, he added.

“We will focus on accelerating the momentum created in the first half, while controlling costs and adapting to the fluid environment.

“We are confident that the fruits of our strategic plans will allow us to exit on a stronger footing when markets stabilize again,” Lim said.

He added that in the longer term, F&N is on track for several other investment projects that will allow the group to capture value in new market segments.

“Our new drinking water plant and RM20 million warehouse in Kota Kinabalu demonstrates our confidence and commitment to developing the drinking water sector in Sabah,” he said.

F&N shares ended 14 sen or 0.61% higher at RM23.00 on Wednesday (April 27th), valuing the company at RM8.44 billion.