KUALA LUMPUR (April 30): Fraser & Neave Holdings Bhd (F&N) posted a net profit of RM165.41 million in the second quarter ended March 31, 2024 (2QFY2024), 63.48% more than the RM101.18 million it made a year before, driven by higher sales amid the Chinese New Year and Hari Raya festivals, and better margins.

The better margin stems from a favourable product mix, lower input costs, better manufacturing overhead efficiencies, and savings in the supply chain, the food and beverage company’s local bourse filing showed.

As a result, its earnings per share increased to 45.2 sen for 2QFY2024, from 27.6 sen per share in 2QFY2023. Quarterly revenue was 12.08% higher at RM1.35 billion, from RM1.21 billion previously, boosted by festive sales and a favourable foreign exchange translation due to a stronger Thai baht.

For the first half of FY2024 (1HFY2024), the group’s net profit grew 12.06% to RM336.15 million from RM299.98 million in 1HFY2023, as revenue expanded 10.73% to RM2.69 billion from RM2.43 billion.

Excluding one-off non-operating items, primarily an RM89.3 million fair value gain recognised from the re-measurement of previously held equity interest in Cocoaland in 1HFY2023, the adjusted operating profit increased by 60.9% to RM412.9 million from RM256.5 million in 1HFY2023.

On its outlook, F&N said although the company has benefited from an overall improvement in commodity prices, it anticipated challenges with the rising costs of raw materials such as sugar, rice, gelatine and cocoa powder.

“Nevertheless, we have taken measures to address these challenges as these commodities are vital to our business,” it added.  

On Tuesday (April 30), F&N’s share price closed unchanged at RM31.6, bringing the company a market capitalisation of RM11.59 billion.

Year-to-date, the stock has gained 12.5% from RM28.10.