F&N wraps FY23 with higher net profit of RM536.9mil

KUALA LUMPUR: Fraser & Neave Holdings Bhd (F&N) said it continues to navigate an uncertain environment as it announced the close of its 2023 financial year on a stronger footing.

The F&B group posted a net profit of RM137.56mil in the fourth financial quarter ended Sept 30, 2023, up from RM98.89mil in the same quarter in the previous year, which brought its earnings per share to 37.5 sen from 27 sen previously.

Revenue was also higher at RM1.24bil as compared to RM1.14bil.

In line with the performance, the board of directors recommended a final single-tier dividend of 33 sen per share and an additional special dividend of 17 sen per share to commemorate the group’s 140th anniversary.

Subject to approval from shareholders at the annual general meeting, the latest dividend would bring the group’s full-year dividend payout to 77 sen per share, up from 60 sen per share in FY22.

Over the full financial year, F&N’s net profit was RM536.9mil on revenue of RM5bil, which compares to net profit of RM383.21mil on revenue of RM4.47bil.

Over the past year, the group faced challenges such as high commodity prices, but were able to overcome them with effective pricing and portfolio strategies and long-term investments that bolstered its supply chain and risk management, said F&N CEO Lim Yew Hoe in a statement.

He reported that group operating profit in FY23 – excluding a remeasurement gain of the equity previously held in Cocoaland and other one-off items – grew 26.8% to RM592.1mil, underpinned by a concerted focus on margin improvement, operational excellence, supply chain management, and sustainability initiatives.

The efforts mitigated the impact of higher input costs and rising energy expenses, contributing to the overall profitability of the group.

“While challenges like commodity price fluctuations and inflationary pressures on consumer demand remain present, we are confident that our agile decision-making framework, focus on channel management, and commitment to innovation and excellence will help us adapt quickly and protect our margins.

“We will remain vigilant in this uncertain environment, leveraging our diversified brand portfolio, businesses and geographical presence to proactively navigate these challenges,” added Lim.