This article first appeared in The Edge Financial Daily, on May 5, 2016.

KUALA LUMPUR: Fraser & Neave Holdings Bhd’s (F&N) net profit rose 28.5% to RM90.57 million or 24.7 sen per share in the second financial quarter ended March 31, 2016 (2QFY16), from RM70.49 million or 19.3 sen per share a year ago, on higher sales and a better product mix.

Quarterly revenue was up 6.3% to RM999.17 million, from RM939.89 million in 2QFY15. F&N also declared an interim dividend of 27 sen per share, amounting to RM99 million, payable on June 15.

For the half-year period ended March 31, 2016 (1HFY16), its net profit grew 72.5% to RM242.23 million or 66.2 sen per share, from RM140.43 million or 38.4 sen per share in 1HFY15. Revenue rose 3.5% to RM2.05 billion, from RM1.98 billion a year ago.

In a statement yesterday, F&N said the group underwent an internal organisation to align its operations and management structure during the period. Its operating businesses are now organised according to products and services, namely Foods and Beverages Malaysia, Foods and Beverages Thailand, Property and Others segments.

Its Foods and Beverages Malaysia segment for 1HFY16 recorded a 39.5% jump in operating profit to RM145.9 million, from RM104.6 million in 1HFY15. F&N’s Foods and Beverages Thailand’s operating profit almost doubled to RM107.8 million in 1HFY16, from RM56 million a year ago, lifted by lower milk-based commodity prices, lower trade discounting and favourable baht conversion.

On prospects for the remaining two quarters, F&N chief executive officer Lim Yew Hoe expects the market to continue to see higher trade price competition, and end-consumer campaigns and programmes, which will impact contribution margins.