KUALA LUMPUR (Aug 3): Fraser & Neave Holdings Bhd’s (F&N) net profit increased 1.9% to RM99.37 million for its third quarter ended June 30, 2023 (3QFY2023), from RM97.50 million a year earlier, driven by overall higher prices, margin and cost management, as well as contribution from Cocoaland Holdings Bhd, which the group acquired in November 2022.

However, earnings were partially offset by one-off non-operating items (fair value loss on investment properties, impairment loss on property, plant and equipment, and inventories written down), the group said in a filing with Bursa Malaysia.

Quarterly revenue jumped 19% to RM1.33 billion from RM1.12 billion, thanks to robust festive sales, improvement in the food and beverage (F&B) markets in both Malaysia and Thailand, recovery in export markets and the additional Cocoaland contribution.

For the first nine months of FY2023, F&N's net profit increased 40.5% to RM399.34 million from RM284.32 million in the previous corresponding period, while revenue improved 12.7% to RM3.76 billion from RM3.33 billion.

Heading into the final quarter of the financial year, F&N is maintaining a cautiously optimistic outlook amid the volatility in commodity prices and foreign exchange rates, and inflationary pressures on its costs and its impact on consumer demand.

“Although some commodity prices have stabilised, challenges persist in prices of tin plates/cans, raw milk and palm oil, and the upward trend in sugar prices. We have purchased substantially our raw material requirements for the fourth quarter,” the group said.

Nevertheless, F&N said it will remain vigilant and proactively navigate this volatile and inflationary environment, leveraging on its diversified brand portfolio.

“We have taken a significant stride towards our vision of becoming a leading milk producer in Malaysia with the recent ground-breaking ceremony of our integrated dairy farm in Gemas, Negeri Sembilan marking the beginning of our journey into the upstream fresh milk sector,” it said.

F&N shares closed up two sen or 0.08% at RM24.92, valuing the group at RM9.14 billion.