SINGAPORE (Aug 7): Fraser and Neave reported 3Q19 earnings of $54.8 million, 9% higher than the earnings of $50.3 million a year ago in 3Q18.
The group posted 3Q19 revenue of $489.7 million, 7% compared to 3Q18, supported by solid performances from all divisions across the group.
This quarter, higher soft drinks and dairy sales contributed to Food & Beverage (F&B) division’s strong top line of $427.3 million, representing a growth of 7% from $398.2 million in the corresponding period last year.
Publishing and Printing division (P&P) also recorded revenue growth of 3% over the corresponding period last year, to $62.3 million.
F&N also posted double-digit profit growth in 2Q19, outpacing sales. Bolstered by higher soft drinks and dairy sales, favourable input costs and contribution from newly-acquired businesses, 3Q19 PBIT improved 26% to $91 million.
Dairies was the star performer, recording a 5% increase in PBIT to hit $77.2 million in the 3Q19, underpinned by the group’s profit share in associate Vinamilk and Dairies Thailand.
Beverages PBIT ended at $6.7 million, more than double the corresponding period last year, led by accelerating sales growth, lower sugar cost and marketing spend.
In its outlook statement, F&N says consumer sentiments in the Food & Beverage segment is expected to remain challenging with continuing competition as well as volatility in foreign currency movements and raw and packaging material prices.
In Malaysia, conditions are expected to remain challenging given the intensifying competition especially in the canned milk segment and the implementation of excise duty on sugar sweetened beverages.
The group says it will also continue to explore new investment opportunities to further grow its beverages and dairies businesses.
As for its printing and publishing business, the group says it will continue its on-going efforts to diversify the portfolio to address the challenging business landscape.
Shares in F&N closed 1 cent higher at $1.67 on Wednesday before the annoucement.
