F&N declares 33 sen final dividend as 4Q net profit climbs 69%

KUALA LUMPUR (Nov 8): Fraser & Neave Holdings Bhd’s (F&N) net profit recorded a 68.49% jump to RM98.89 million in the fourth quarter ended Sept 30, 2022 (4QFY22), compared with RM58.69 million in 4QFY21.

Quarterly revenue grew 26.93% to RM1.14 billion against RM896.26 million driven by the positive momentum for the recovery of economic activities, out-of-home consumption and trade restocking, reflecting business returning to pre-pandemic levels.

It also recommended a final single-tier dividend of 33 sen per share, which will bring the total dividend for FY22 to 60 sen per share, the same amount it declared in FY21.

A bourse filing on Tuesday (Nov 28) showed that F&N’s earnings per share rose to 27 sen from 16 sen previously.

Its profit before tax (PBT) for 4QFY22 increased to RM119.5 million from RM61.9 million in 4QFY21, amid strong demand and margin recovery from price adjustments, which have largely offset the adverse commodity price impact. Excluding one-off non-operating items, PBT for the quarter would have grown from RM72.7 million to RM118 million.

For the full FY22, the group’s net profit declined 3.03% to RM383.21 million from RM395.16 million despite revenue rising 8.21% to RM4.47 billion from RM4.13 billion.

F&N said improved revenue and cost management measures, including price and trade discount adjustments, had significantly mitigated the impact of higher commodity and freight costs, flood recovery expenses and foreign exchange translation loss from a weaker Thai baht.

Looking ahead, F&B said exports remain a key focus for the group, which also serve as a natural hedge to cushion the forex impact. It will continue to act proactively to navigate the volatile environment and take deliberate steps to enhance its resilience through the forward purchase of key commodities and hedging strategy.

F&N’s share price, which has fallen 19.27% year to date, closed at RM19.94 on Tuesday — up four sen or 0.2% with a market capitalisation of RM7.31 billion.