KUALA LUMPUR (Nov 7): Fraser & Neave Holdings Bhd’s (F&N) net profit rose 40.11% to RM536.90 million for the financial year ended Sept 30, 2023 (FY2023), from RM383.21 million a year earlier, fuelled by festive sales and out-of-home consumption, as well as contributions from snack and candy maker Cocoaland Holdings Bhd.
For the same reasons, revenue climbed 11.88% to a record high of RM5 billion versus RM4.47 billion previously, according to the food and beverage (F&B) group’s bourse filing on Tuesday.
This is the group's highest full-year net profit since FY2010, when it logged a net profit of RM695.29 million on a revenue of RM3.64 billion.
F&N has recommended a dividend of 50 sen per share — comprising a final dividend of 33 sen and special dividend of 17 sen.
“Subject to shareholders’ approval at the forthcoming annual general meeting, the total dividend for FY2023 would amount to 77 sen per share (FY2022: 60 sen per share), bringing the total dividend payout to RM282.4 million (FY2022: RM220.1 million),” the group said in a statement.
For the fourth quarter of FY2023, F&N posted a 39.1% increase in net profit to RM137.56 million, compared with RM98.89 million in 4QFY2022, with revenue rising 9.39% to RM1.24 billion from RM1.14 billion.
The improved quarterly earnings was attributed to margin recovery in the F&B Thailand segment, sustained sales momentum in F&B Malaysia, Cocoaland's contributions, and helped by favourable Thai baht to ringgit exchange.
Going forward, F&N chief executive officer Lim Yew Hoe noted that while challenges, including commodity price fluctuations and inflationary pressures, continue to affect consumer demand, the group is confident in its ability to adapt and protect its margins.
However, Lim said the group will remain vigilant in the uncertain environment, leveraging its diversified brand portfolio, businesses and geographical presence to proactively navigate the challenges.
F&N chairman Tengku Syed Badarudin Jamalullail said the group anticipates new opportunities and looks forward to advancing its halal food pillar and supporting Malaysia’s food security agenda with its dairy farm.
“These are but a few of the exciting developments ahead as we continue to pursue excellence as a sustainable F&B company,” he added.
Shares in F&N closed 18 sen or 0.69% lower at RM25.82, valuing the group at RM9.47 billion.