KUALA LUMPUR (Feb 3): Fraser & Neave Holdings Bhd’s (F&N) net profit more than doubled to RM198.8 million for the first quarter ended Dec 31, 2022 (1QFY2023) from RM92.95 million in the same quarter last year, boosted by higher non-taxable income.

Quarterly revenue increased 10.1% to RM1.22 billion from RM1.11 billion driven by beverage sales for the festive season, higher exports from F&B Malaysia, and additional contribution from Cocoaland (which was fully acquired in November last year). Revenue for the quarter under review, however, was partly offset by lower exports from F&B Thailand.

The beverage manufacturer’s earnings per share escalated to 55.2 sen from 25.4 sen.

The group’s operating profit in 1QFY2023 soared 110% to RM224.9 million compared with RM107.2 million in the previous year mainly due to RM89.3 million fair value gain recognised from remeasurement of previously held equity interest in Cocoaland and RM5 million insurance claim received for plant
and equipment damaged during the flood in Shah Alam last year.

“Excluding one-off non-operating items, the adjusted group operating profit marginally declined by 1.3% to RM130.7 million (1QFY2022: RM132.3 million) due to lower operating profit generated by F&B Thailand,” said F&N in a filing with Bursa Malaysia.

Despite the challenging outlook due to ongoing inflationary pressures and the possibility of a recession, F&N said the group will drive the next phase of growth with various measures and the completion of several investment projects as well as two strategic acquisitions.

“We have commercialised our new RM20 million drinking water plant and warehouse in Kota Kinabalu in December 2022 and will be producing plant-based beverages from our new Wang Muang plant in Thailand later this year.

“We are now focused on the integration of Cocoaland and look forward to leveraging the strengths of both organisations to generate synergistic values for shareholders.

“We are hopeful that Malaysian ringgit and Thai baht will continue to strengthen against the US dollar which will provide some relief against costly inputs that have yet to return to pre-pandemic price levels,” F&N added.

F&N shares were down 40 sen or 1.57% at RM25 on Friday, translating into a market capitalisation of RM9.17 billion. The stock has risen 15.85% year to date.