KUALA LUMPUR (Jan 31): Fraser & Neave Holdings Bhd’s (F&N) net profit for the first quarter ended Dec 31, 2023 (1QFY2024) fell 14.11% to RM170.74 million or 46.60 sen per share, from RM198.8 million or 55.20 sen per share a year before, due to one-off non-operating items.

F&N said the adjustments for one-off non-operating items include the interim insurance claim over its plant and machinery and inventories damaged due to flood, reversal of impairment loss on property, plant and equipment, and the relocation and renovation costs due to its move to its new manufacturing premise, its bourse filing on Wednesday showed.

Quarterly revenue, however, grew 9.39% to RM1.33 billion, from RM1.22 billion a year ago, driven by continuing momentum for food and beverages (F&B) in Thailand and Malaysia, as well as higher exports aided by favourable foreign exchange translation from a stronger Thai baht.

Its operating profit for 1QFY2024 declined 6.9% to RM209.3 million versus RM224.9 million in 1QFY2023, due to a one-off remeasurement gain of RM89.3 million in its previously held equity interest in an associate.

Compared to the immediately preceding quarter of 4QFY2023, the group’s net profit rose 24.12% from RM137.56 million, while revenue was 7.11% higher from RM1.24 billion, mainly due to F&B Malaysia’s festive selling and sales penetration for dairy and food products.

F&N did not declare any dividend for the quarter under review.

Commenting on its prospects, the group expects the F&B industry for Malaysia and Thailand to remain volatile for FY2024, amid commodity price fluctuations, inflationary pressures and geopolitical uncertainties.

Nonetheless, F&N said that it will capitalise on the return of international tourists and out-of-home consumption, post-pandemic.

“As we continue our efforts to build up [our] halal packaged food and dairy pillars, we will focus on the core of our business to deliver pure enjoyment and pure goodness to our stakeholders.

“Regardless of the market environment, we are resolute in our long-term strategies, focused on delivering cost efficiency and identifying new market opportunities,” it said.

Shares in F&N closed 20 sen or 0.72% lower to RM27.70 on Wednesday, giving the group a market capitalisation of RM10.16 billion.