F&N forsees weak consumer demand in second half

For the second quarter ending March 31, the group reported a net profit of RM102.17 million, down from RM104.42 million recorded in the same period previously. — AFP pic
For the second quarter ending March 31, the group reported a net profit of RM102.17 million, down from RM104.42 million recorded in the same period previously. — AFP pic

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KUALA LUMPUR, May 4 — Fraser & Neave Holdings Bhd (F&N) expects weak demand into the second half of the financial year ended September 30, 2020, particularly for its beverages as consumers adjust to a “new normal” of reduced social activities.

Chairman Tengku Syed Badarudin Jamalullail said in light of many uncertainties as the crisis leading from Covid-19 is still unfolding, the conglomerate remains positive given its strong fundamentals, robust balance sheet and strong portfolio of brands.

“We will continue to execute cost optimisation initiatives to deliver efficiencies and savings and reinvest in our brands,” he said in a statement today.

Tengku Syed Badarudin said the group has hedged a portion of its raw material requirements ahead for the financial year to mitigate the impact of the rise in certain dairy input prices.

In addition, F&N is strengthening its businesses to be ready when economic activities eventually normalise and consumer demand recovers.

For the second quarter ending March 31, the group reported a net profit of RM102.17 million, down from RM104.42 million recorded in the same period previously.

Revenue slid 1.9 per cent to RM1 billion versus RM1.02 billion, owing to the adverse impact of the pandemic and movement control measures on consumer demand.

In line with the group’s performance, the board declared an interim single tier dividend of 27.0 sen per share (2019: 27.0 sen) for the financial year, amounting to approximately RM99.0 million and to be paid on June 12, 2020. — Bernama

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