Fraser & Neave Q3 profits up 9% to $54.83m
Revenue from its dairies business grew 5.5% thanks to growth in its Thailand unit.
Fraser and Neave’s (F&N) profits rose 9% YoY to $54.83m in the third quarter of 2019, its financial statement revealed. Revenue was also up 6.7% to $489.73m from $458.99m last year.
F&N’s beverages revenue rose 11.6% YoY thanks to growth in its soft drinks business in Malaysia and Singapore, spurred by its Hari Raya festive campaign and improved sales of 100Plus in Singapore.
Revenue from its dairies business also grew by 5.5% to $294.3m, as its Thailand operations recorded double-digit growth from loyalty programs and campaigns for both domestic and export markets. Its Malaysian operations also saw higher revenue due to continued efforts to strengthen the route-to-market amidst continuing price competition.
“In Malaysia, conditions are expected to remain challenging given the intensifying competition especially in the canned milk segment and the implementation of excise duty on sugar sweetened beverages,” the firm said in its financial statement, adding that it introduced healthier options to soften the impact of sugar sweetened beverages excise duty which kicked into effect on 01 July.
Revenue from its publishing and printing business was up 2.6% to $62.3m thanks to the boost from education orders and maiden revenue contribution from Print Lab Pte. Ltd.
In April, F&N bought a 60% stake in Print Lab for a total consideration of $24.5m.