F&N 1Q net profit rises 2% to RM69.94 mil

by **Cals** Tue 10 Feb 2015, 20:18

F&N 1Q net profit rises 2% to RM69.94 mil

By Ahmad Naqib Idris / theedgemarkets.com | February 10, 2015 : 6:01 PM MYT

KUALA LUMPUR (Feb 10): Fraser & Neave Holdings Bhd (F&N) posted net profit of RM69.94 million for its first financial quarter ended Dec 31, 2014, up 2% from RM68.77 million in the previous year.

Revenue grew 9% to RM1.04 billion from RM947.76 million in the previous corresponding quarter.

In its filing with the bourse, F&N (fundamental: 2.1; valuation: 0.9) attributed the improvement in its results to better performance of its dairies segments in Malaysia and Thailand.

“Dairies Malaysia recorded strong sales growth of RM25.5 million or 9.4% due to strong growth in sales volumes in both domestic and export markets for sweetened condensed milk and evaporated milk, supported by increased market presence and penetration, particularly in the on-premise and take-home segment and effective consumer programs,” it said.

Meanwhile, its dairies Thailand segment saw a 21% year-on-year (y-o-y) increase in sales to RM61.2 million, supported by higher trade and consumer off-take, higher promotional and trade management activities and the depreciation of the ringgit against the Thai baht.

On the other hand, its soft drinks segment saw dampened sales growth during the quarter, due to the East Coast flood and the later commencement of Chinese New Year.

“Whilst the group’s performance in the first quarter was within expectations, going forward trading conditions in Malaysia will be challenging amidst a backdrop of falling oil prices, weaker Malaysian ringgit against the US dollar and the impending introduction of goods and services tax (GST) in April 2015,” said F&N in its financial result announcement.

F&N share price fell four sen or 0.2% to RM19.08 today, bringing its market capitalisation to RM7 billion.

(Note: [size=14]The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
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