KUALA LUMPUR, Nov 3 — Fraser & Neave Holdings Bhd (F&N) posted a lower net profit of RM395.16 million for the financial year ended Sept 30, 2021 (FY2021) from RM410.38 million in FY2020.
The food and beverage (F&B) company attributed the lower earnings to higher commodity prices, lower export margins, company restructuring, and Covid-related expenses, as well as a lower share of profit from an associate.
“The 3.7 per cent decline in the group profit for the year was partially mitigated by investment tax incentives at F&B Thailand and deferred tax assets recognised for F&B Malaysia,” it reported to Bursa Malaysia.
Revenue, however, increased to RM4.13 billion in FY2021 against RM3.99 billion previously, driven by the strong export performance of its F&B business in Malaysia and Thailand, as well as nine months of contribution from its food business.
The company also recommended a final single tier dividend of 33.0 sen per share, similar to those in FY2020 despite the tough operating environment.
For the fourth quarter ended Sept 30, (Q4 FY2021), F&N saw its net profit drop to RM58.69 million from RM85.99 million in the same period last year, with revenue declining to RM896.26 million versus RM953.70 million previously.
In a separate statement, chief executive officer Lim Yew Hoe acknowledged that FY2021 was undoubtedly difficult in both demand and cost aspects, but contributions from diversified products and geographical presence were key to the group’s resilient performance for the year.
Moving forward, he said the group remains cautious given the challenging market conditions and ongoing global uncertainties due to the pandemic.
“Exports will continue to be a key focus moving forward for both F&B Malaysia and F&B Thailand.
“We will not shy away from investing in capability to tap into new opportunities, be it for our own branded exports or key original equipment manufacturer (OEM) customers,” he said, adding that the group will also focus on building its new halal-packaged “food pillar.” — Bernama
