F&B manufacturer Fraser and Neave (F&N), an associate of Thai Beverage, announced in its business update that its 9MFY2021 ended June earnings came in 1.0% higher y-o-y at $119.1 million, while revenue increased by 5.8% y-o-y to $1.5 billion.
Profit before interest and tax (PBIT) was 3.9% higher at $219.3 million, despite PBIT margin declining by some 27 basis points to 15%.
The group’s revenue growth was mainly thanks to a 5% y-o-y growth in its dairies segment, which remain to be its largest revenue contributor, thanks to higher canned milk sales and strong export to Middle East and Africa, despite subdued on-premise channel demand. During the period, the group also saw higher soft drink and beer sales volumes which helped lift Beverages revenue.
Publishing & Printing revenue grew marginally, to $162.9 million, due to resumption of textbook sales deferred due to the pandemic and lower trade returns supported P&P’s growth.
Comparing the group’s market, Thailand and Malaysia remain to be the group’s largest markets with both countries contributing 36% each to the group’s overall revenue, followed by 22% from Singapore and 6% from other markets. For the 9MFY2021 period, all markets recorded growth in revenue.
Looking forward, the group intends to strengthen its Halal position. With that goal, it has acquired the Sri Nona Group of Companies for $19 million.
Furthermore, the group is focused on launching new products that are “healthier choices”.
Shares in F&N closed at $1.43 on Aug 5.
Photo: F&N
